Exercise 19-8 (Algo) Variable costing income statement LO P2 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 $1,075) Cost of goods sold (825 5500) Cross profit Selling and administrative expenses Incone Additional Information 5 886,875 412,500 474,375 250,000 $224,375 a. Product cost per kayak under absorption costing totals $500, which consists of $400 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 $250,000 in selling and administrative expenses consists of $95,000 that is variable and $155,000 that is fixed. Prepare an income statement for the current year under variable costing. KENZI Income Statement (Variable Costing) Income