XYZ Company began operations during 2011 and employs a job-order costing system that applies overhead to jobs using direct labor hours as the activity level. For 2011, XYZ Company had total estimated overhead of $229,500 and total estimated direct labor hours of 25,500.

Listed below is a summary of events and transactions that occurred during 2011:

a. XYZ Company purchased 80,000 pounds of direct materials at $4.20 per pound.

b. XYZ began work on three jobs. Direct materials used for each job were:

Job A-1 .................. 17,000 pounds
Job A-2 .................. 25,000 pounds
Job A-3 .................. 30,000 pounds

c. Direct labor hours used for each job were:

Job A-1 .................. 9,800 hours
Job A-2 .................. 7,800 hours
Job A-3 .................. 8,400 hours

Direct labor workers are paid $12 per hour.

d. The following additional costs were incurred:

Manufacturing Facility Administrative Facility

Rent .................. $ 42,000 $ 15,000
Depreciation ....... 55,000 12,000
Utilities ............. 51,000 10,000
Salaries .............. 92,0001 65,000
Totals ............... $ 240,000 $ 102,000

1 This $92,000 is all indirect labor. See letter (c) for direct labor for the manufacturing facility.

e. Jobs A-1 and A-2 were completed during 2011. Job A-2 was sold to the customer for $420,000.

Calculate the amount of net income reported on XYZ Company's 2011 income statement. Do not use decimals in your answer.