Swain Company manufactures one product. It does not maintain any beginning or ending inventories, and its uses a standard cost system. The company's beginning balance in Retained Earnings is $65.000. It sells one product for $170 per unit and it generated total sales during the period of $603.500 while incurring selling and administrative expenses of $54,500. Swain Company does not have any variable manufacturing overhead costs and its standard cost card for its only product is as follows: (1) Standard Quantity or Hours 7.0 pounds 2.0 hours 3.5 hours (2) Standard Price or Rate $ 9 per pound $ 12 per hour $20 per hour Standard Cost (1) x (2) Direct materials Direct labor Fixed manufacturing overhead Total standard cost per unit S 63 During the period. Swain recorded the following variances: Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Fixed overhead budget variance Fixed overhead volume variance $ 3,525 U $ 9, 250 F $ 4,025 U $ 6,725 U $ 1,425 U $6,888 Required: 1 When Swain closes its standard cost variances, the cost of goods sold will increase (decrease) by how much? 2 Prepare an income statement for the year. 3. What is Swain's ending balance in Retained Earnings? Complete this question by entering your answers in the tabs below. Racid 1 Required 2 Required 3 When Swain closes its standard cost variances, the cost of goods sold will increase (decrease by how much