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 $838,800 $1,015,900 Cost of goods sold Finished goods, January 1 24,700 17,400 Cost of goods manufactured 547,700 650,700 Total available 572,400 668,100 Finished goods, December 31 17,400 13,700 Cost of goods sold before overhead adjustment 555,000 654,400 Underapplied factory overhead 35,100 14,000 Cost of goods sold 590,100 668,400 Gross profit 248,700 347,500 Selling expenses 81,200 94,900 Administrative expenses 69,600 74,400 Total operating expenses 150,800 169,300 Operating income $97,900 $178,200 Daniels Tool Die Corporation Inventory Balances January 1, 2015 December 31, 2015 December 31, 2016 Raw material $21,600 $29,000 $10,800 Work in process $40,300 $47,200 $63,800 Direct labour hours (used in WIP) 1,310 1,660 2,400 Finished goods $24,700 $17,400 $13,700 Direct labour hours (used in FG) 1,470 1,090 820 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 $24,540 Variable factory overhead $152,148 Direct labour hours (used in WIP) 24,540 Direct labour costs (used in FG) $147,240 In 2015 and 2016, the actual direct labour hours used were 20,700 and 23,700, respectively Raw materials put into production were $292,000 in 2015 and $370,900 in 2016 The actual fixed overhead was $42,100 for 2015 and $21,260 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 )

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The Daniels Tool & Die Corporation has been in existence for a little over three years. The companys sales have been increasing each year as

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		$838,800	$1,015,900
Cost of goods sold
	Finished goods, January 1	24,700	17,400
	Cost of goods manufactured	547,700	650,700
	Total available	572,400	668,100
	Finished goods, December 31	17,400	13,700
	Cost of goods sold before overhead adjustment	555,000	654,400
	Underapplied factory overhead	35,100	14,000
Cost of goods sold		590,100	668,400
Gross profit		248,700	347,500
Selling expenses		81,200	94,900
Administrative expenses		69,600	74,400
	Total operating expenses	150,800	169,300
Operating income		$97,900	$178,200

Daniels Tool & Die Corporation Inventory Balances
	January 1, 2015	December 31, 2015	December 31, 2016
Raw material	$21,600	$29,000	$10,800
Work in process	$40,300	$47,200	$63,800
Direct labour hours (used in WIP)	1,310	1,660	2,400
Finished goods	$24,700	$17,400	$13,700
Direct labour hours (used in FG)	1,470	1,090	820

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		$24,540
Variable factory overhead		$152,148
Direct labour hours (used in WIP)		24,540
Direct labour costs (used in FG)		$147,240

In 2015 and 2016, the actual direct labour hours used were 20,700 and 23,700, respectively. Raw materials put into production were $292,000 in 2015 and $370,900 in 2016. The actual fixed overhead was $42,100 for 2015 and $21,260 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.)