Grafton Corporation manufactures one product. It does not maintain any beginning or ending inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. Its standard cost per unit produced is $38.85. During the year, the company produced and sold 28,200 units at a price of $50.10 per unit and its selling and administrative expenses totaled $120,000. The company does not have any variable manufacturing overhead costs. It recorded the following variances during the year. Materials price variance $ 61,670 F Materials quantity variance $ 700 F Labor rate variance $8,776 V Labor efficiency variance $ 12,300 F Fixed manufacturing overhead budget variance $ 16,400 F Fixed manufacturing overhead volume variance $ 21.560 U Required: Prepare an income statement for the year