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 110,000 units 113,750 units 3,750 units $ 506,250 281,250 $ 787,500 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 $135) 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 40 per unit 66 per unit $ $3,200,000 $7,400,000 $1,350,000 4,400,000 1. Prepare the current-year income statement for the company using variable costi OAK MART COMPANY $ 36,400,000 Variable Costing Income Statement Sales Less: Variable costs Beginning inventory Variable costs $ 506,250 Fixed costs $ 281,250 Manufacturing costs this year Direct materials 40 Direct labor 66 Variable overhead costs 3,200,000 Total variable costs available 3,987,606 Less: Ending finished goods inventory 0 Variable cost of goods sold $ 3,987,606 Variable selling and administrative expenses 1,350,000 Total variable costs available Total variable costs Contribution margin Less: Fixed expenses Fixed overhead costs $ 7,400,000 Fixed selling and administrative costs 4,400,000 Fixed overhead costs 7,400,000 Total fixed expenses Net income (loss) 5,337,606 19,200,000 2. Prepare the current-year income statement for the company using absorption costing. OAK MART COMPANY Absorption Costing Income Statement $ 36,400,000 Sales Less: Cost of goods sold Beginning inventory Manufacturing costs this year Net income (loss) Fixed costs added to(subtracted from) inventory 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 110,000 units 113,750 units 3,750 units $ 506,250 281,250 $ 787,500 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 $135) 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 $ $ 40 per unit 66 per unit $3,200,000 $7,400,000 $1,350,000 4,400,000 3. Fill in the blanks: The dollar difference in variable costing income and absorption costing income = 320 units fixed overhead per unit