Required information

Exercise $6-3($Algo$)$ Income statement under absorption costing and variable costing LO

P$1,$ P$2$

$[$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

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

$$462,000$ per year

$$100,000$ per unit

$$100,000$ per year

Exercise $6-3($Algo$)$ Part $2$b

$2$b$.$ Assume the company uses variable costing. Prepare its income statement for the year under variable costing.