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Required information

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Cool Sky reports the following for its first year of operations. The company produced $46,000$ units and sold $38,000$ units

at a price of $$150$ per unit.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

$$66$ per unit

$$25$ per unit

$$9$ per unit

$$598,000$ per year

$$12$ per unit $$105,000$ per year

$2$b$.$ Assume the company uses variable costing. Prepare its income statement for the year under variable costing.