Rey Company's only product sells for $$234$ per unit. Data for its first year of operations follow.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

Units produced and sold

Prepare an income statement for the year using absorption costing

Prepare an income statement for the year using variable costing.

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Required $2$

Prepare an income statement for the year using absorption costing.