There are two parts to this questions

! 2 Required information Exercise 6-11 (Algo) Absorption costing and variable costing income statements LO P2 (The following information applies to the questions displayed below.) Oak Mart, a producer of solid oak tables, reports the following data from its first year of business. Sales price per unit Units produced this year Units sold this year Variable selling and administrative expenses Fixed selling and administrative expenses Direct materials Direct labor Variable overhead Fixed overhead $ 300 per unit 110,000 units 110,000 units $ 12 per unit $ 4,200,000 per year $ 46 per unit $ 66 per unit $ 28 per unit $ 7,200,000 per year Exercise 6-11 (Algo) Part 1 1. Prepare the current-year income statement using variable costing. ces $ 33,000,000 OAK MART Income Statement (Variable Costing) Sales Less: Variable expenses Variable selling and administrative expenses $ 109,860 Variable cost of goods sold 1,320,000 1,429.860 Contribution margin Less: Fixed expenses Fixed overhead $ 7,200,000 4,200,000 Fixed selling and administrative expenses 11,400,000 Income ! Required information 12 Exercise 6-11 (Algo) Absorption costing and variable costing income statements LO P2 [The following information applies to the questions displayed below.] Oak Mart, a producer of solid oak tables, reports the following data from its first year of business. k Sales price per unit Units produced this year Units sold this year Variable selling and administrative expenses Fixed selling and administrative expenses Direct materials Direct labor Variable overhead Fixed overhead $ 300 per unit 110,000 units 110,000 units $ 12 per unit $ 4,200,000 per year $ 46 per unit $ 66 per unit $ 28 per unit $ 7,200,000 per year Exercise 6-11 (Algo) Part 2 2. Prepare the current-year income statement using absorption costing. ces OAK MART Income Statement (Absorption Costing) $ 33,000,000 Income