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

Sales price per unit$310per unitUnits produced this year115,000unitsUnits sold this year118,750unitsUnits in beginning-year inventory3,750unitsBeginning inventory costsVariable (3,750 units $135)$506,250Fixed (3,750 units $70)262,500Total$768,750Manufacturing costs this yearDirect materials$48per unitDirect labor$60per unitOverhead costs this yearVariable overhead$3,400,000Fixed overhead$7,400,000Selling and administrative costs this yearVariable$1,350,000Fixed4,400,000

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