Cullumber Ltd. manufactures three models of children's swing sets: Standard, Deluxe, and Super. The Standard set is made of steel, the Deluxe set is made of aluminum, and the Super set is made of a titanium-aluminum alloy, Because of the different materials used, production requirements differ significantly across models in terms of machine types and time requirements. However, once the parts are produced, assembly time per set is similar for the three models. For this reason, Cullumber has adopted the practice of allocating overhead costs on the basis of machine hours. Last year, the company produced 5,000 Standard sets 500 Deluxe sets, and 2,000 Super sets. The company had the following revenues and expenses for the year: CULLUMBERLTD. Income Statement Year Ended December 31, 2022 Standard Deluxe Super $475,000 $380,000 $560,000 Total $1.415.000 Sales Direct costs: 240,000 150,000 590,000 Direct materials 200,000 14,000 54,000 24,000 92.000 Direct labour Variable overhead costs: ? ? 25,000 ? Machine set-ups ? 2 60,000 2 Order processing 2 2 90.000 Warehouse DAO -/1 Variable overhead costs: ? 2 Machine set-ups Order processing ? 25,000 ? ? ? 60,000 Warehouse ? ? 2 90,000 ? ? 2 35,000 ? ? 2 523,000 Shipping Contribution margin Fixed overhead costs: Plant administration 88,000 Other 182,000 Gross profit $253,000 The chief financial officer of Cullumber has hired a consultant to recommend cost allocation bases. The consultant has recommended the following: Activity Level Cost Drivers Standard Deluxe Super Total Activities Machine set-ups Sales order processing 22 11 17 50 No. of production runs No. of sales orders received 300 200 300 800 Warehouse costs No. of units held in inventory 200 100 100 400 Warehouse costs 200 100 100 400 No. of units held in inventory No. of units shipped Shipping 5,000 500 2,000 7.500 The consultant found no basis for allocating the plant administration and other fixed overhead costs, and recommended that they not be applied to products. (a) Complete the income statement using the bases recommended by the consultant. Do not allocate any fixed overhead casts. (Round overhead rates to 4 decimal places.e.g. 25.2255 and final answers to decimal places, eg. 1525.) CULLUMBERLTD. Income Statement Year Ended December 31, 2022 Standard Deluxe Super Total $475,000 Sales $380,000 $560,000 $1,415.000 150,000 240,000 590,000 Direct costs: Direct materials Direct labour 200,000 14,000 24,000 92.000 54,000 Variable overhead costs: 25,000 Machine set- ups Direct costs: Direct materials 200,000 150,000 240,000 590,000 Direct labour 54,000 14,000 24,000 92,000 Variable overhead costs: Machine set ups 25,000 Order processing 60,000 Warehouse 90,000 Shipping 35,000 $ 523,000 Contribution margin Fixed overhead costs: Plant administration 88,000 Other 182,000 $253,000 Gross profit