QS $18-25$B $($Algo$)$ Variable costing income statement LO P$4$

Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced $6,800$ rackets and sold

$5,700.$ Each racket was sold at a price of $$98.$ Fixed overhead costs are $$93,840$ for the year, and fixed selling and

administrative costs are $$66,000$ for the year. The company also reports the following per unit varlable costs for the year.

Direct materials

$$12\mathrm{.}24$

Direct labor

$8\mathrm{.}24$

Variable overhead

$5\mathrm{.}32$

Variable selling and administrative expenses

$2\mathrm{.}80$

Requlred:

Prepare an Income statement under varlable costing.