Exercise 06-4 Variable costing income statement LO P2 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks and sold 825 at a price of $1,075 each. At this first year-end, the company reported the following Income statement Information using absorption costing Sales (825 x $1,075) Cost of goods sold (825 * $500) Gross margin Selling and administrative expenses Net income 886,875 12. See 474,375 220,000 254, 375 Additional Information a. Product cost per kayak totals $500, which consists of $400 in variable production cost and $100 in fixed production cost-the latter amount is based on $107,500 of fixed production costs allocated to the 1.075 kayaks produced b. The $220.000 in selling and administrative expense consists of $85.000 that is variable and $135.000 that is fixed. Required: 1. Prepare an Income statement for the current year under variable costing 2. Fill in the blanks Complete this question by entering your answers in the tabs below. Required 1 Required 2 of ext e to search en NewU c uudLOH.COM UW COLCCLLLLL YouTube ps News NO Translate Saved Required 1 Required 2 Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Income Statement Net income Oss Required 2 > pe here to search ote 90 MG b. The $220,000 in selling and administrative expense consists of $85,000 that is variable and $135,000 that is rixea. Required: 1. Prepare an Income statement for the current year under varlable costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the blanks: The dollar difference in variable costing income and absorption costing income = fixed overhead per unit.