Exercise 19-7 Income reporting under absorption costing and variable costing LO P2

[The following information applies to the questions displayed below.] Oak Mart, a producer of solid oak tables, reports the following data from its second year of business.

Sales price per unit	$	330	per unit
Units produced this year		110,000	units
Units sold this year		113,500	units
Units in beginning-year inventory		3,500	units
Beginning inventory costs
Variable (3,500 units $130)	$	455,000
Fixed (3,500 units $75)		262,500
Total	$	717,500
Manufacturing costs this year
Direct materials	$	46	per unit
Direct labor	$	70	per unit
Overhead costs this year
Variable overhead	$	3,200,000
Fixed overhead	$	7,400,000
Selling and administrative costs this year
Variable	$	1,400,000
Fixed		4,400,000

1. Prepare the current-year income statement for the company using variable costing.