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 ..................     18,000 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   ……. 45,000 12,000

                Utilities   ………….                   51,000                                         10,000

                Salaries   ………..…                  92,0001                                       65,000

                Totals   …………...              $ 230,000                                      $ 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-3 were completed during 2011. Job A-3 was sold to the customer for $430,000.

Calculate the amount of net income reported on XYZ Company's 2011 income statement