2. Prepare the current year income statement for the company using absorption costing OAK MART COMPANY Requlred Informatlon Oak Mart, a producer of solid oak tables, reports the following data from its second year Cost of goods sold Beginning inventory Manufacturing costs this year of business. Direct labor Direct materials Fixed overhead costs Less: Ending inventory Variable overhead costs Sales Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs price per unit 310 per unit 100,000 units 103,750 units 3,750 units Variable (3,750 units $140) Fixed (3,750 unitsx $75) $ 525,000 of goods sold 281,250 Gross margin Iling general and administrative Total $ 806,250 Fixed selling and administrative costs Manufacturing costs this year Variable selling and administrative expenses Direct materials Direct labor Overhead costs this year 50 per unit 68 per unit Net income (loss) $ 3.200,000 $ 7400,000 Variable overhead Fixed owerheod t income under variable costing is higher than net income under absorption costing by: Selling and dminstrtive costs this year Fixed costs added to(subtracted from) inventory