Rey Company's only product sells for $222 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 $ 26 per unit $ 34 per unit $ 12 per unit $ 364,000 per year $ 24 per unit $ 212,000 per year 26,000 units 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. Required 1 Required 2 Prepare an income statement for the year using variable costing. REY COMPANY Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses T Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses Income $ 5,772,000 $ 312,000 624,000 936,000 < Required 1 Required 2 >