Exercise 7-2 Variable Costing Income Statement; Explanation of Difference in Net Operating Income [LO7-2] Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical Instrument called a gamelan that is similar to a xylophone. The gamefans are sold for $950 Selected data for the company's operations last year follow 250 230 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit Direct materials Direct Labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 5 5 $ 125 335 55 30 $ 25,000 $ 15,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold Grossmarin Selling and administrative pense Mat operating income 5 218,500 17,450 11.050 $ 9,150 Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of lost year? 2. Prepare an income statement for last year using variable costing. What is the amount of the difference in net operating income between the two costing methods? Complete this question by entering your answers in the tabs below. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? du colinduced in intery Prepare an income statement for last year using variable costing. Ida Sidha Karya Company Variable Costing Income Statement 0 0 O $ 0 Ren1 DAD What is the amount of the difference in net operating income between the two costing methods? Amount of the difference in not operating income