Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced $1,050$ kayaks and

sold $800$ at a price of $$1,050$ 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 overhead costs and $$100$ in fixed overhead cost. Fixed overhead of $$100$ per unit is based on

$$105,000$ of fixed overhead per year divided by $1,050$ kayaks produced.

b$.$ The $$210,000$ in selling and administrative expenses consists of $$85,000$ that is variable and $$125,000$ that is

fixed.

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