Required information [The following information applies to the questions displayed below) Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 6,950 rackets and sold 5,380. Each racket was sold at a price of $90. Fixed overhead costs are $90,350 per year, and fixed selling and administrative costs are $67,200 per year. The company also reports the following per unit variable costs for the year. Direct materials Direct labor Variable overhead Variable selling and administrative expenses $ 12 8 2 Prepare an income statement under absorption costing ACES INCORPORATED Income Statement (Absorption Costing) Sales Cost of goods sold Gross profit Selling and administrative expenses Income 0 $ 0 Tora Company plans to produce 1,190 units Prepare a direct labor budget for July July Each unit requires four hours of direct labor. The direct labor rate is $19 per hour TORA COMPANY Direct Labor Budget Units to produce July 1,190 Direct labor hours needed Cost of direct labor