Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. $ 330 per unit 105,000 units 108,750 units 3,750 units $ 525,000 281,250 $ 806,250 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 $140) 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 42 per unit 66 per unit $3,200,000 $7,400,000 $1,300,000 4,600,000 2. Prepare the current-year income statement for the company using absorption costing. Answer is not complete. OAK MART COMPANY Absorption Costing Income Statement Sales 35,887,500 $ 806,250 Beginning inventory Manufacturing costs this year Direct materials Direct labor Variable overhead costs Fixed overhead costs 4,410,000 6,930,000 3,200,000 7,400,000 22,746,250 13,141,250 Cost of goods sold Gross margin Selling general and administrative expenses Variable selling and administrative expenses Fixed selling and administrative costs $ 1,300,000 4,600,000 Total selling general and administrative expenses Net income (loss) 5,900,000 7,241,250 $ Net income under variable costing is higher than net income under absorption costing by: Number of units added to(subtracted from) inventory Fixed costs added to(subtracted from) inventory