Spots Tots Ltd. manufactures and sells a variety of luxury dog foods. Cost and sales data for January 2022, the first month of operations, are shown below:

Each bag of dog food sells for $30. Prepare a January 2022 income statement for Spots Tots using variable costing.

\begin{tabular}{|lrl} \hline Manufacturing Costs: & & \\ \hline Fixed overhead & $47,355 & \\ Variable overhead & $1.70 & per bag of dog food \\ Direct labour & $3.60 & per bag \\ \hline Direct material & $5.90 & per bag \\ Beginning inventory & 0 & bags \\ \hline Number of bags produced & 12,300 & bags \\ \hline Number of bags sold & 10,300 & bags \\ \hline Selling and administrative costs: & & \\ \hline Fixed & $40,700 & \\ Variable & $4.00 per bag sold \\ \hline \end{tabular} Income Statement Variable Costing $ $