VERY URGENT PLEASE HELP

The Donaldson Company uses an absorption$-$costing system based on standard costs. Variable manufacturing cost consists of direct material cost of $$3\mathrm{.}00$ per unit and other variable

manufacturing costs of $$1\mathrm{.}60$ per unit. The standard production rate is $10$ units per machine$-$hour. Total budgeted and actual fixed manufacturing overhead costs are $$525,000.$ Fixed

manufacturing overhead is allocated at $$7$ per machine$-$hour based on fixed manufacturing costs of $$525,00075,000$ machine$-$hours, which is the level Donaldson uses as its

denominator level. The selling price is $$14$ per unit. Variable operating $($nonmanufacturing$)$ cost$,$ which is driven by units sold, is $$2$ per unit. Fixed operating $($nonmanufacturing$)$ costs

are $$160,000.$ Beginning inventory in $2020$ is $35,000$ units; ending inventory is $40,000$ units. Sales in $2020$ are $685,000$ units. The same standard unit costs persisted throughout $2019$

and $2020.$ For simplicity, assume that there are no price, spending, or efficiency variances.

Read the requirements.

Requirement $1.$ Prepare an income statement for $2020$ assuming that the production$-$volume variance is written off at year$-$end as an adjustment to cost of goods sold.

Complete the top half of the income statement first, then complete the bottom portion. $($Label the variance as favorable $($F$)$ or unfavorable $($U$).)$

Absorption costing