Horace Company manufacturers a professionaldashgrade vacuum cleaner and began operations in 2014. For2014 Horace budgeted to produce and sell 27,000 units. The company had no price, spending, or efficiency variances and writes off production-volume variance to cost of goods sold. Actual data for 2014 are given as follows:

Units produced 21,000

Units sold 18,500

Selling price $420

Variable costs:

Manufacturing cost per unit produced

Direct materials $31

Direct manufacturing labor24

Manufacturing overhead 58

Marketing cost per unit sold 41

Fixed costs:

Manufacturing costs $1,566,000

Administrative costs 926,400

Marketing 1,282,800

Prepare a 2014 income statement for Horace Company using absorption costing.