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Required information Exercise 1 9 - 3 ( Algo ) Income statement under absorption costing and variable costing LO P 1 , P 2 Skip

Required information
Exercise 19-3(Algo) Income statement under absorption costing and variable costing LO P1, P2
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[The following information applies to the questions displayed below.]
Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units at a price of $130 per unit.
Direct materials $ 54 per unit
Direct labor $ 20 per unit
Variable overhead $ 6 per unit
Fixed overhead $ 462,000 per year
Variable selling and administrative expenses $ 10 per unit
Fixed selling and administrative expenses $ 100,000 per year
Exercise 19-3(Algo) Part 2b
2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.

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