Exercise 198 (Algo) Variable costing income statement LO P2 Kenzi, a manufacturer of kayaks, began operations this year, During this year, 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 $450, which consists of $350 in direct materials, direct labor, and variable overhend 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 $220,000 in seling and administrative expenses consists of $85,000 that is varlable and $135,000 that is fixed. Prepare an income statement for the current year under variable costing