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		105,000	units
Units sold this year		109,000	units
Units in beginning-year inventory		4,000	units
Beginning inventory costs
Variable (4,000 units $140)	$	560,000
Fixed (4,000 units $75)		300,000
Total	$	860,000
Manufacturing costs this year
Direct materials	$	42	per unit
Direct labor	$	64	per unit
Overhead costs this year
Variable overhead	$	3,400,000
Fixed overhead	$	7,000,000
Selling and administrative costs this year
Variable	$	1,400,000
Fixed		4,600,000

Exercise 19-7 Part 1

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