The Daniels Tool & Die Corporation has been in existence for a little over three years. The companys sales have been increasing each year as it builds a reputation. The company manufactures dies to its customers specifications and therefore uses a job-order cost system. Factory overhead is applied to the jobs based on direct labour hoursthe absorption-costing (full) method. Overapplied or underapplied overhead is treated as an adjustment to Cost of Goods Sold. The companys income statements and other data for the last two years are as follows:

DANIELS TOOL & DIE CORPORATION 20152016 Comparative Income Statements
			2015		2016
Sales			$835,500		$1,015,300
Cost of goods sold
	Finished goods, January 1		24,800		17,500
	Cost of goods manufactured		546,600		651,500
	Total available		571,400		669,000
	Finished goods, December 31		17,500		13,100
	Cost of goods sold before overhead adjustment		553,900		655,900
	Underapplied factory overhead		35,600		14,000
Cost of goods sold			589,500		669,900
Gross profit			246,000		345,400
Selling expenses			81,800		94,100
Administrative expenses			69,000		74,800
	Total operating expenses		150,800		168,900
Operating income			$95,200		$176,500

Daniels Tool & Die Corporation Inventory Balances
		January 1, 2015			December 31, 2015			December 31, 2016
Raw material		$21,200			$29,300			$10,300
Work in process		$40,300			$47,000			$63,200
Direct labour hours (used in WIP)		1,360			1,620			2,090
Finished goods		$24,800			$17,500			$13,100
Direct labour hours (used in FG)		1,490			1,100			810

Daniels used the same predetermined overhead rate in applying overhead to its production orders in both 2015 and 2016. The rate was based on the following estimates:

Fixed factory overhead		$24,500
Variable factory overhead		$151,900
Direct labour hours (used in WIP)		24,500
Direct labour costs (used in FG)		$147,000

In 2015 and 2016, the actual direct labour hours used were 20,600 and 23,100, respectively. Raw materials put into production were $291,400 in 2015 and $370,300 in 2016. The actual fixed overhead was $43,000 for 2015 and $29,580 for 2016, and the planned direct labour rate was the direct labour achieved. For both years, all of the administrative costs were fixed. The variable portion of the selling expenses results from a 5% commission that is paid as a percentage of the sales revenue.

For the year ended December 31, 2016, prepare a revised income statement for Daniels Tool & Die Corporation using the variable-costing method. (Round answers to 0 decimal places, e.g. 5,275.)

For the year ended December 31, 2016, prepare a revised income statement for Daniels Tool & Die Corporation using the variable-costing method. (Round answers to 0 decimal places, e.g. 5,275.) Daniels Tools & Die Corporation Variable Costing Income Statement For the year ended December 31, 2016 Sales Less : Variable costs Variable cost of goods sold Variable selling and administrative expenses Total variable costs Contribution margin Less : Fixed costs Fixed manufacturing overhead Fixed selling and administrative expenses Total fixed costs Operating income