Problem 8.43B: I need step by step solutions with explanations. Question is attached as an image in this discussion box.

P8.43B Prepare an income statement under variable costing; discuss the advantages of variable costing over absorption costing. "(LO 1) Wingfoot Co. began operations on July 1, 2019. By the end of its first fiscal year, ended June 30, 2020, Wingfoot had sold 10,000 wingers. Selected data on operations for the year ended June 30, 2020, follow. (Any balance sheet figures are as at June 30, 2020.) Selling price $100 Wingers produced 18,000 Ending work in process 0 Total manufacturing overhead $15,000 Wage rate $8 per hour Machine hours used 9.000 Wages payable $20,000 Direct materials costs $10 per kilogram Selling and administrative expenses $40,000 Additional information: 1. Each winger requires 2 kg of direct materials, 0.5 machine hours, and one direct labour hour. 2.Except for machinery depreciation of $5,000 and a $1,000 miscellaneous fixed cost, all manufacturing overhead is variable. 3.Except for $4,000 in advertising expenses, all selling and administrative expenses are variable. 4. The tax rate is 40%. Instructions Assume that the company uses variable costing and prepare an contribution-method income statement in good form for the year ended June 30, 2020. Net income = $401,400