Rey Company's single product sells at a price of $222 per unit. Data for its single product for its first year of operations follow. Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed 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. Required 1 Required 2 Prepare an income statement for the year using variable costing. REY COMPANY Variable Costing Income Statement Sales $ 5,772,000 Less: Cost of goods sold Direct materials $ Direct labor 676,000 884,000 312,000 624,000 Variable overhead costs Variable selling and administrative expenses 2,496,000 0 Net income (loss)