4 Exercise 19-8 (Algo) Variable costing income statement LO P2 $2 ints 02:46:32 Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,050 kayaks and sold 800 at a price of $1,050 each. At year-end, the company reported the following income statement information using absorption costing. Sales (800 x $1,050) Cost of goods sold (800 x $425) Gross profit Selling and administrative expenses: Income Additional Information $840,000 340,000 500,000 240,000 $ 260,000 a. Product cost per kayak under absorption costing totals $425, which consists of $325 in direct materials, direct labor, and variable overhead costs and $100 in fixed overhead cost. Fixed overhead of $100 per unit is based on $105,000 of fixed overhead per year divided by 1,050 kayaks produced. b. The $240,000 in selling and administrative expenses consists of $95,000 that is variable and $145,000 that is fixed. Prepare an income statement for the current year under variable costing. Answer is not complete. KENZI Income Statement (Variable Costing) Sales $ 840,000 Less: Variable expenses Variable cost of goods sold $ 260,000 Variable selling and administrative expenses 95,000 Variable overhead costs Contribution margin 355,000 485,000 ( Less: Fixed expenses Fixed selling and administrative expenses 800X Fixed selling and administrative expenses Income 800 606 X