Ch 19: Assignment i 16 Exercise 19-8 (Algo) Variable costing income statement LO P2 Saved 4.76 points eBook Hint Print Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,075 kayaks and sold 825 at a price of $1,075 each. At year-end, the company reported the following income statement information using absorption costing. Sales (825 x $1,075) Cost of goods sold (825 x $425) Gross profit Selling and administrative expenses Income Additional Information $ 886,875 350,625 536,250 240,000 $ 296,250 a. Product cost per kayak under absorption costing totals $425, which consists of $325 in direct materials, direct labor, and variable overhead costs and $100 in fixed overhead cost. Fixed overhead of $100 per unit is based on $107,500 of fixed overhead per year divided by 1,075 kayaks produced. b. The $240,000 in selling and administrative expenses consists of $85,000 that is variable and $155,000 that is fixed. Prepare an income statement for the current year under variable costing. References Income KENZI Income Statement (Variable Costing)