Rey Companys only product sells for $231 per unit. Data for its first year of operations follow.

Direct materials

$ 35

per unit

Direct labor

$ 43

per unit

Variable overhead

$ 9

per unit

Fixed overhead

$ 286,000

per year

Variable selling and administrative expenses

$ 33

per unit

Fixed selling and administrative expenses

$ 230,000

per year

Units produced and sold

26,000

units

1. Prepare an income statement for the year using absorption costing

Rey Company's only product sells for $231 per unit. Data for its first year of operations follow. 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. Prepare an income statement for the year using absorption costing