Can you help with the attached question, I'm stuck on the income statement.

5P8.3}5A (LO 1, 2, 3) The Daniels Tool & Die Corporation has been in existence for a little over three - years. The company's sales have been increasing each year as it builds a reputation. The company manu- . factures dies to its customers' specications and therefore uses a job-order cost system. Factory overhead is applied to the jobs based on direct labour hoursthe absorption-costing (full) method. Overapplied or under-applied overhead is treated as an adjustment to cost of goods sold. The company's income statements and other data for the past two years are as follows: DANIELS TOOL & DIE CORPORATION 20192020 Comparative Income Statements 2019 2020 Sales $840,000 $1,015,000 Cost of goods sold Finished goods, January 1 25,000 18,000 Cost of goods manufactured _ 548,000 657,600 Total available 573,000 675,600 Finished goods, December 31 __18,000 14,000 Cost of goods sold before overhead adjustment 555,000 661,600 Under-applied factory overhead 36,000 14,400 Cost of goods sold 591,000 676,000 Gross prot 249,000 339,000 Selling expenses 82,000 95,000 Administrative expenses 70,000 75,000 Total operating expenses 152,000 170,000 Operating income 33 97,000 $ 169,000 Daniels Tool & Die Corporation InVentOry Balances 7 ~ . December 31, 2018 December 31,2019 December 31,2020 Raw material $22,000 $30,000 _ $210 000 Work in process $40,000 $48,000 7 $64, 000 ' Direct labour hours (used in WIP) 1,335 1,600 ' > ' 2,1013% Finished goods $25,000 $18,000 $14,000 1 ; Direct labour hours (used in FG) 1,450 1,050 . 820 ' I Daniels used the same predetermined overhead rate in applying overhead to its production orders' 1n both 2019 and 2020. The rate was based on the following estimates: Fixed factory overhead $ 25,000 Variable factory overhead $155,000 Direct labour hours 25,000 Direct labour costs $150,000 In 2019 and 2020, the actual direct labour hours used were 20,000 and 23,000, respectively, Raw materials put into production were $292,000 in 2019 and $370,000 in 2020. The actual xed overhead was $42, 300 for 2019 and $37, 400 for 2020, and the planned direct labour rate was the direct labour achieved. For both years, all of the administrative costs were xed. The variable portion of the selling expenses results from a 5% commission that 18 paid as a percentage of the sales revenue. Instructions :1. For the year ended December 3 i .. man prepare a revised income statement for Daniels Tool & Die Corporation using the wraa b. Reconcile the difference. it; 1. . a mm between Daniels Tool & Die Corporation's 2020 absorption-costing income \"sterner\" and the 1evis ed 2020 income statement prepared under Variable costing. ' c. Describe both the advantages and disadvantages of using variable costing