Classic Brass Income Statement Year Ended December 31, 2013 $3,200,000 $ 975,000 351,250 1,000,000 Sales... Cost of goods sold: Direct materials ..... Direct labour..... Manufacturing overhead". Gross margin..... Selling and administrative expenses: Shipping expenses.... Marketing expenses.. General administrative expenses. Operating income... 2,326,250 873.750 65,000 300,000 510,000 875,000 (1,250) $ *The company's traditional costing system allocates manufacturing overhead to products using a plantwide overhead rate and machine hours as the allocation base. Inventory levels did not change during the year. Classic Brass Income Statement Year Ended December 31, 2013 $3,200,000 $ 975,000 351,250 1,000,000 Sales.... Cost of goods sold: Direct materials ..... Direct labour..... Manufacturing overhead". Gross margin..... Selling and administrative expenses: Shipping expenses.... Marketing expenses.. General administrative expenses. Operating income... 2,326,250 873.750 65,000 300,000 510,000 875,000 (1,250) $ *The company's traditional costing system allocates manufacturing overhead to products using a plantwide overhead rate and machine-hours as the allocation base. Inventory levels did not change during the year. Classic Brass Income Statement Year Ended December 31, 2013 $3,200,000 $ 975,000 351,250 1,000,000 Sales... Cost of goods sold: Direct materials ..... Direct labour..... Manufacturing overhead". Gross margin..... Selling and administrative expenses: Shipping expenses.... Marketing expenses.. General administrative expenses. Operating income... 2,326,250 873.750 65,000 300,000 510,000 875,000 (1,250) $ *The company's traditional costing system allocates manufacturing overhead to products using a plantwide overhead rate and machine hours as the allocation base. Inventory levels did not change during the year. Classic Brass Income Statement Year Ended December 31, 2013 $3,200,000 $ 975,000 351,250 1,000,000 Sales.... Cost of goods sold: Direct materials ..... Direct labour..... Manufacturing overhead". Gross margin..... Selling and administrative expenses: Shipping expenses.... Marketing expenses.. General administrative expenses. Operating income... 2,326,250 873.750 65,000 300,000 510,000 875,000 (1,250) $ *The company's traditional costing system allocates manufacturing overhead to products using a plantwide overhead rate and machine-hours as the allocation base. Inventory levels did not change during the year