Rey Companys single product sells at a price of $219 per unit. Data for its single product 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.

Att 23 per unit 31 per unit Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold tot 9 per unit $ 253,000 per year att 21 per unit $ 206,000 per year 23,000 units REY COMPANY Absorption Costing Income Statement Net income (loss) REY COMPANY Variable Costing Income Statement Net income (loss)