Exercise 10B-1 Standard Cost Flows; Income Statement Preparation (LO10-5] Forsyth Company manufactures one product, it does not maintain any beginning ornding inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $135 per unit. Its standard cost per unit produced is $105 and its selling and administrative expenses totaled $235,000. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year: Materials quantity variance Labor rate variance Labor Fixed overhead budget variance 10,280 U s 3,500 u $ 4,400 F $ 2,500 F 12,000F Required: 1. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much? 2. Prepare an income statement for the year Complete this question by entering your answers in the tabs below. Required 1 Required 2 When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much