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Rey Company's only product sells for $$230$ per unit. Data for its first year of operations follow.

Direct materials

Direct labor

Variable overhead

Fixed overhead

$$34$ per unit

$$42$ per unit

$$10$ per unit

Variable selling and administrative expenses

Fixed selling and administrative expenses

Units produced and sold

$$318,000$ per year

$$32$ per unit

$$228,000$ per year

$26,500$ units

Prepare an income statement for the year using absorption costing

Prepare an income statement for the year using variable costing.

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.

$\backslash$table$[[$REY COMPANY$],[$Income Statement $($Variable Costing$)],[$Sales$,,$$$,6,095,000$