Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $153 per unit. Its standard cost per unit produced is $123 and its selling and administrative expenses totaled $244,000. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year: Materials price variance$8,300FMaterials quantity variance$12,000ULabor rate variance$5,300ULabor efficiency variance$6,200FFixed overhead budget variance$4,300FFixed overhead volume variance$13,800F Required:1. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much. 2. Prepare an income statement for the year.