Oak Mart, a producer of solid oak tables, reports the following data from its first year of business.

Sales price per unit	$ 410	per unit
Units produced this year	134,000	units
Units sold this year	134,000	units
Variable selling and administrative expenses	$ 30	per unit
Fixed selling and administrative expenses	$ 4,690,000	per year
Direct materials	$ 58	per unit
Direct labor	$ 80	per unit
Variable overhead	$ 46	per unit
Fixed overhead	$ 10,318,000	per year

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

2. Prepare the current-year income statement using absorption costing.