QS 18-25B (Algo) Variable costing income statement LO P4

Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company produced 5,400 rackets and sold 4,300. Each racket was sold at a price of $84. Fixed overhead costs are $66,960 for the year, and fixed selling and administrative costs are $64,600 for the year. The company also reports the following per unit variable costs for the year.

Direct materials	$ 11.82
Direct labor	7.82
Variable overhead	4.76
Variable selling and administrative expenses	1.40

Required: Prepare an income statement under variable costing.