Required information

Skip to question

[The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 46,000 units and sold 38,000 units at a price of $140 per unit.

Direct materials	$ 60	per unit
Direct labor	$ 22	per unit
Variable overhead	$ 8	per unit
Fixed overhead	$ 552,000	per year
Variable selling and administrative expenses	$ 10	per unit
Fixed selling and administrative expenses	$ 105,000	per year

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