GoGo Ltd. manufactures three models of childrens swing sets: Standard, Deluxe, and Super. The Standard set is made of steel, the Deluxe set is made of aluminum, and the Super set is made of a titanium-aluminum alloy. Because of the different materials used, production requirements differ significantly across models in terms of machine types and time requirements. However, once the parts are produced, assembly time per set is similar for the three models. For this reason, GoGo has adopted the practice of allocating overhead costs on the basis of machine hours. Last year, the company produced 5,000 Standard sets, 500 Deluxe sets, and 2,000 Super sets. The company had the following revenues and expenses for the year:

GOGO LTD. Income Statement Year Ended December 31, 2020
		Standard		Deluxe		Super		Total
Sales		$475,000		$380,000		$560,000		$1,415,000
Direct costs:
Direct materials		200,000		150,000		240,000		590,000
Direct labour		54,000		14,000		24,000		92,000
Variable overhead costs:
Machine set-ups		?		?		?		24,750
Order processing		?		?		?		59,850
Warehouse		?		?		?		91,200
Shipping		?		?		?		33,520
Contribution margin		?		?		?		523,680
Fixed overhead costs:
Plant administration								88,230
Other								183,570
Gross profit								$251,880

The chief financial officer of GoGo has hired a consultant to recommend cost allocation bases. The consultant has recommended the following:

				Activity Level
Activities		Cost Drivers		Standard				Deluxe				Super				Total
Machine set-ups		No. of production runs			23				12				20				55
Sales order processing		No. of sales orders received			320				220				315				855
Warehouse costs		No. of units held in inventory			240				125				115				480
Shipping		No. of units shipped			5,410				560				2,410				8,380

The consultant found no basis for allocating the plant administration and other fixed overhead costs, and recommended that they not be applied to products. (a) Complete the income statement using the bases recommended by the consultant. Do not allocate any fixed overhead costs. (Round overhead rates to 3 decimal places. e.g. 25.225 and final answers to 0 decimal places, e.g. 1525.)

GOGO LTD. Income Statement Year Ended December 31, 2020
		Standard		Deluxe		Super		Total
Sales		$475,000		$380,000		$560,000		$1,415,000
Direct costs:
Direct materials		200,000		150,000		240,000		590,000
Direct labour		54,000		14,000		24,000		92,000
Variable overhead costs:
Machine set-ups								24,750
Order processing								59,850
Warehouse								91,200
Shipping								33,520
Contribution margin		$		$		$		523,680
Fixed overhead costs:
Plant administration								88,230
Other								183,570
Gross profit								$251,880

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