Rey Company's single product sells at a price of $216 per unit. Data for its single product for its first year of operations follow. Prepare an income statement for the year assuming
(a) Absorption costing
(b) Variable costing,
Direct materials......................................$20 per unit
Direct labor..........................................$28 per unit
Overhead costs
Variable overhead...................................$ 6 per unit
Fixed overhead per year.................. $ 160,000 per year
Selling and administrative expenses
Variable............................................ $ 18 per unit
Fixed........................................ $200,000 per year
Units produced (and sold).....................20,000 units