Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. $ 300 per unit 120,000 units 123,750 units 3,750 units $ 506,250 281,250 787,500 $ Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,750 units X $135) Fixed (3,750 units X $75) Total Manufacturing costs this year Direct materials Direct labor Overhead costs this year Variable overhead Fixed overhead Selling and administrative costs this year Variable Fixed $ 48 per unit 62 per unit $3,000,000 $7,600,000 $1,350,000 4,600,000 Exercise 19-7 Part 1 1. Prepare the current-year income statement for the company using variable costing. OAK MART COMPANY Variable Costing Income Statement Sales $ 37,125,000 Plus: Variable costs Beginning inventory: Variable costs $ 506,250 Manufacturing costs this year Direct materials 5,760,000 Direct labor Variable overhead costs 7,440,000 3,000,000 16,706,250 Total variable costs available 0 Less: Ending finished goods inventory Variable cost of goods sold Variable selling and administrative expenses 1,350,000 Total variable costs 1,350,000 Contribution margin Less: Fixed expenses $ Fixed selling and administrative costs Fixed overhead costs 4,600,000 7,600,000 Total fixed expenses 12,200,000 Net income (loss)