Ida Sidha Karya Company is a family-owned company located in thevillage of Gianyar on the island of

Ida Sidha Karya Company is a family-owned company located in thevillage of Gianyar on the island of Bali in Indonesia. The companyproduces a handcrafted Balinese musical instrument called a gamelanthat is similar to a xylophone. The gamelans are sold for $970.Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 200 Units sold 180Units in ending inventory 20 Variable costs per unit: Directmaterials $ 130 Direct labor $ 300 Variable manufacturing overhead$ 30 Variable selling and administrative $ 15 Fixed costs: Fixedmanufacturing overhead $ 63,000 Fixed selling and administrative $25,000 The absorption costing income statement prepared by thecompany’s accountant for last year appears below: Sales $ 174,600Cost of goods sold 139,500 Gross margin 35,100 Selling andadministrative expense 27,700 Net operating income $ 7,400 Required: 1. Under absorption costing, how much fixedmanufacturing overhead cost is included in the company’s inventoryat the end of last year? 2. Prepare an income statement for lastyear using variable costing. . . .