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 x $1,075) Cost of goods sold (825 x $450) Gross profit Selling and administrative expenses Income Additional Information $ 886,875 371,250 515,625 230,000 $285,625 a. Product cost per kayak under absorption costing totals $450, which consists of $350 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 $230,000 in selling and administrative expenses consists of $95,000 that is variable and $135,000 that is fixed. Prepare an income statement for the current year under variable costing Answer is not complete. KENZI Income Statement (Variable Costing) Sales Less Variable expenses Variable cost of goods sold Variable selling and administrative expenses 288,750 $ 886.875