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Exercise $19-3($Algo$)$ Income statement under absorption costing and variable costing LO P$1,$ P$2$

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Cool Sky reports the following for its first year of operations. The company produced $44,000$ units and sold $36,000$ units at a price of $$130$ per unit.

Direct materials $ $54$ per unit

Direct labor $ $20$ per unit

Variable overhead $ $6$ per unit

Fixed overhead $ $484,000$ per year

Variable selling and administrative expenses $ $10$ per unit

Fixed selling and administrative expenses $ $110,000$ per year

Exercise $19-3($Algo$)$ Part $2$b

$2$b$.$ Assume the company uses variable costing. Prepare its income statement for the year under variable costing.