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 $$500,$ which consists of $$400$ 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 $$230,000$ in selling and administrative expenses consists of $$85,000$ that is variable and $$145,000$ that is fixed.

Prepare an income statement for the current year under variable costing.