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Rey Company's single product sells at a price of $236 per unit. Data for its single product for its first year of operations follow. $ $ 40 per unit 48 per unit Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold $ 4 per unit $ 141,000 per year $ 38 per unit $ 240,000 per year 23,500 units 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing. Required 1 Required 2 Prepare an income statement for the year using absorption costing. REY COMPANY Absorption Costing Income Statement Sales $ 5,546,000 Plus: Variable costs Direct materials Direct labor $ 940,000 1,128,000 94,000 Variable overhead costs 2,162,000 Net income (loss) $ 21,100,000 Required 1 Required 2 Prepare an income statement for the year using variable costing. REY COMPANY Variable Costing Income Statement Sales 0 0 Net income (loss)