Rey Company's only product sells for $235 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 $ 39 per unit $ 47 per unit $ 5 per unit $ 168,000 per year $ 37 per unit $ 238,000 per year 24,000 units 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing. Answer is not complete. 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 $ 5,640,000 Less: Variable expenses Direct materials $ Direct labor Variable cost of goods sold 936,000 1,128,000 120,000 2,184,000 Contribution margin 2,568,000 Less: Fixed expenses Fixed overhead 168,000 Fixed selling and administrative expenses 238,000 406,000 Income < Required 1 Required 2 >