Reference no: EM132901687
Question - Oak Mart, a producer of solid oak tables, reports the following data from its second year of business.
Sales price per unit $310 per unit
Units produced this year 115,000 units
Units sold this year 118,750 units
Units in beginning-year inventory 3,750 units
Beginning inventory costs Variable (3,750 units × $135) $506,250
Fixed (3,750 units × $70) 262,500
Total $768,750
Manufacturing costs this year
Direct materials $48 per unit
Direct labor $60per unit
Overhead costs this year
Variable overhead $3,400,000
Fixed overhead $7,400,000
Selling and administrative costs this year
Variable $1,350,000
Fixed 4,400,000
Required - Prepare the current-year income statement for the company using variable costing.
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