19.7

Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. $320 per unit 115,000 units 118,000 units 3,000 units $405,000 240,000 $645,000 Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,000 units x $135) Fixed (3,000 units x $80) Total Manufacturing costs this year Direct materials Direct labor Overhead costs this year Variable overhead Fixed overhead Selling and administrative costs this year Variable Fixed $40 per unit $62 per unit $3,220,000 $7,400,000 $1,416,000 $4,600,000 1. Prepare the current-year income statement for the company using variable costing. 2. Prepare the current-year income statement for the company using absorption costing. Check (2) Absorption costing income, $8,749,000 3. Fill in the blanks: The dollar difference in variable costing income and absorption costing income =. fixed overhead per unit. units x