Variable Costing

Question: Webelo Company produces cronks. Each cronk requires $2 in DM and $3 in DL. Variable MOH is allocated at the rate of $5 per unit. Webelo honors contracts requiring payments of $1,000 per month for rent and $7,000 per month for equipment lease agreements. Webelo also pays sales commissions of $2 per cronk completed. Webelo produces 1,600 units, but only sells 1,200 for $25.00 apiece

Required: Produce a variable costing income statement in the space below