Rey Companys only product sells for $218 per unit. Data for its first year of operations follow. Direct materials $ 22 per unit Direct labor $ 30 per unit Variable overhead $ 8 per unit Fixed overhead $ 220,000 per year Variable selling and administrative expenses $ 20 per unit Fixed selling and administrative expenses $ 204,000 per year Units produced and sold 22,000 units 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing.