Exercise 19-5 Absorption costing and variable costing income statements LO P2 Rey Company's single product sells at a price of $216 per unit. Data for its single product for its first year of operations follow. Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold 20 per unit 28 per unit 6 per unit $ 160,000 per year 18 per unit $ 200,000 per year 20,000 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 Net income (loss) Regud Required 2 > Required 1 Required 2 Prepare an income statement for the year using variable costing. REY COMPANY Variable Costing Income Statement 0 0 Net income (loss)