Rey Company's only product sells for $234 per unit. Data for its first year of operations follow. Direct materials $ 38 per unit Direct labor $ 46 per unit Variable overhead $ 6 per unit Fixed overhead $ 196,000 per year Variable selling and administrative expenses $ 36 per unit Fixed selling and administrative expenses $ 236,000 per year Units produced and sold 24,500 units 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing. 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 i Required 2 Prepare an income statement for the year using variable costing. REY COMPANY Income Statement (Variable Costing) $ 5,733,000 Sales Less: Variable expenses 0 2,646,000 Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses 196,000 236,000 432,000 2,214,000 Income $ 1. Prepare an income statement for the year using absorption cos 2. Prepare an income statement for the year using variable costin Complete this question by entering your answers in the tabs Required 1 Required 2 Prepare an income statement for the year using absorption costing. REY COMPANY Income Statement (Absorption Costing) $ 5,733,000 Sales Cost of goods sold Gross profit Selling and administrative expenses Income 2,401,000 3,332,000 1,118,000 $ 2,214,000 Recured 1