Required information [The following information applies to the questions displayed below. Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. $ 320 per unit 100,000 units 103, 250 units 3,250 units $ 422,500 227,500 650,000 $ Sales price per unit Units produced this year Units sold this year Units in beginning-year inventory Beginning inventory costs Variable (3,250 units x $130) Fixed (3,250 units * $ 70) 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 $3,400,000 $ 7,400,000 $1,450,000 4,000,000 2. Prepare the current-year income statement for the company using absorption costing. 2. Prepare the current-year income statement for the company using absorption costing. OAK MART COMPANY Absorption Costing Income Statement Sales Less: Cost of goods sold Beginning inventory Manufacturing costs this year Variable overhead costs Direct labor Direct materials Less: Ending inventory Fixed overhead costs Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses Net income (loss) Net income under variable costing is higher than net income under absorption costing by: Fixed costs added to(subtracted from) inventory