Exercise 19-8 (Algo) Variable costing income statement LO P2 Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,025 kayaks and sold 775 at a price of $1,025 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 $400, which consists of $300 in direct materials, direct labor, and variable overhead costs and $100 in fixed overhead cost. Fixed overhead of $100 per unit is based on $102,500 of fixed overhead per year divided by 1,025 kayaks produced. b. The $220,000 in selling and administrative expenses consists of $85,000 that is variable and $135,000 that is fixed. Prepare an income statement for the current year under variable costing