Classic Boats, Inc., produces custom wood boats. Each boat is built to customer specifications. During April, its first month of operations, Classic Boats began production of a customer order. This order used $38,800 in direct materials and $7,400 in direct labor. Classic Boats applies overhead using a predetermined rate of $60 per direct labor dollar. The customer order was delivered and billed at $70,000.

1. Calculate the production cost incurred in April for this custom order.
2. How much gross profit did Classic Boats earn from this custom order?
3. Assume selling costs totaled $2,000 and general and administrative costs totaled $5,500. Prepare an income statement for Classic Boats for the month of April. (Assume there is no adjustment to cost of goods sold for underapplied or overapplied overhead.)