Exercise 06-5 Absorption costing and variable costing income statements LO P2 Rey Company's single product sells at a price of $219 per unit. Data for its single product for its first year of operations follow 23 per unit Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed 31 per unit 9 per unit $253,000 per year 21 per unit $206,000 per year 23,000 units Units produced and sold 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing. Complete this question by entering your answers in the tabs below. Daired 2 Prepare an income statement for the year using absorption costing. REY COMPANY Absorption Costing Income Statement $ 5,037,000 Sales Less: Cost of goods sold $ 529,000 Direct materials 483,000 Direct labor 207,000 Variable overhead costs 253,000 Fixed overhead costs 1,472,000 Cost of goods sold Gross margin 206,000 Fixed selling and administrative costs 483 000 Variable selling and administrative expenses 689,000 Total selling, general and administrative expenses Net income (loss) Required 2 Prepare an income staterment for the year using variable costing. REY COMPANY Variable Costing Income Statement 0 Net income (loss)