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 $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 $105,000 of fixed overhead per year divided by 1,050 kayaks produced b. The $220,000 in selling and administrative expenses consists of $95,000 that is variable and $125,000 that is fixed