Refer to the data in Exercise 6-1 for Ida Sidha J=Karya company, the absorption costing income statememt prepared by the company's accountant for the last year appears as shown:

Sales 191250, cost of goods sold 157,500 gross margin 33750, selling and administrative expense 24500, net operting income

Required: Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of the last year?

Prepare an income statement for last year using variable costing. Explain the difference in net operating income between the two costing methods