The Stenback Company uses an absorption-costing system based on standard costs. Variable manufacturing cost consists of direct material cost of $3.00 per unit and other variable manufacturing costs of $1.40 per unit. The standard production rate is 10 units per machine-hour Total budgeted and actual fixed manufacturing overhead costs are $525,000, Foxed manufacturing overhead is allocated at 57 per machine-hour based on fixed manufacturing costs of $525,000/75.000 machine-hours, which is the level Stenback uses as its denominator level. The selling price is $16 per unit. Variable operating (non-manufacturing) cost, which is driven by units sold, is $2 per unit. Fixed operating (non manufacturing) costs are $100,000. Beginning inventory in 2022 is 35.000 units; ending inventory is 40,000 units. Sales in 2022 are 685,000 units The same standard unit costs persisted throughout 2021 and 2022. For simplicity, assume that there are no price, spending, or efficiency variances. Required Requirement 1. Prepare an income statement for 2022 assuming that the production-volume variarice is writen off at year end as an adjustment to cost of goods sold Complete the top hat of the income statement first, and then complete the bottom portion. (Label the vanance as favourable (F) or unfavourable (U). Use parentheses or a minus sign for an operating loss.) Absorption costing Revenues Cost of goods scid Beginning inventory Vanable manufacturing costs Alocated fixed manufacturing costs Cost of goods available for sale Deduct ending inventory Adjustment for production volume vanance Cost of goods sold Gross margin 140000 9590000