Rey Company$$s only product sells for $$230$ per unit. Data for its first year of operations follow.

Direct materials $ $34$ per unit

Direct labor $ $42$ per unit

Variable overhead $ $10$ per unit

Fixed overhead $ $318,000$ per year

Variable selling and administrative expenses $ $32$ per unit

Fixed selling and administrative expenses $ $228,000$ per year

Units produced and sold $26,500$ units

Prepare an income statement for the year using absorption costing

Prepare an income statement for the year using variable costing.