4. classic boats, inc., produces custom wood boats. each boat is built to customer specifications. during april, its first month of operations, classic boats began production of a customer order. this order used $38,800 in direct materials and $7,400 in direct labor. classic boats applies overhead using a predetermined rate of $1.60 per direct labor dollar. the customer order was delivered and billed at $70,000. a. calculate the production cost incurred in april for this custom order. b. how much gross profit did classic boats earn from this custom order? c. assume selling costs totaled $2,000 and general and administrative costs totaled $5,500. prepare an income statement for classic boats for the month of april. (assume there is no adjustment to cost of goods sold for underapplied or overapplied overhead.)
