Exercise 06-5 Absorption costing and variable costing income statements LO P2 Rey Company's single product sells at a price of $219 per unit. Data for its single product for its first year of operations follow Direct materials Direct labor Overhead costs 23 per unit 31 per unit 9 per unit $253,000 per year Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed 21 per unit $206,000 per year 23,000 units Units produced and sold 1. Prepare an income statement for the year using absorption costing 2. 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 Prov 1 of 1 Next Prepare an income statement for the year using variable costing. REY COMPANY Variable Costing Income Statement 0 0 Net income (loss) Required 1 Prepare an income statement for the year using absorption costing. REY COMPANY Absorption Costing Income Statement Sales $ 5,037,000 Less: Cost of goods sold Direct materials $529,000 Direct labor 483,000 207,000 253,000 Variable overhead costs Fixed overhead costs Cost of goods sold Gross margin 1.472,000 es Fixed selling and administrative costs Variable selling and administrative expenses 206,000 483,000 Total selling, general and administrative expenses 689,000 Net income (loss) Required 2