Exercise 198 (Algo) Variable costing income statement LO P2 Kenz, a manufacturer of kayaks, began operations this year, During this yeac, the company produced 1,100 kayaks and sold 850 at a price of $1,100 each. At year-end, the company reported the following income statement information using absorption costing Additional Information a. Product cost per kayak under absorption costing totals $425, which consists of $325 in diroct materiols, direct labor, and variable overhead costs and $100 in fixed overhead cost. Fixed overhead of $100 per unit is based on $110,000 of fixed overhead per year divided by 1100 kayaks produced b. The $240,000 in selling and administrative expenses consists of $105,000 that is variable and $135,000 that is fixed. Prepare an income statement for the current year under variable costing. Additional Information 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 $110,000 of fixed overhead per year divided by 1,100 kayaks produced. b. The $240,000 in selling and administrative expenses consists of $105,000 that is variable and $135,000 that is fixed. Prepare an income statement for the current year under variable costing