Exercise $19-9($Algo$)$ Absorption costing and variable costing income statements LO P$2$

Rey Company's only product sells for $$228$ per unit. Data for its first year of operations follow.

$\backslash$table$[[$Direct materials,$$32$ per unit$],[$Direct labor,$$40$ per unit$],[$Variable overhead,$$12$ per unit$],[$Fixed overhead,$$385,000$ per year$],[$Variable selling and administrative expenses,$$30$ per unit$],[$Fixed selling and administrative expenses,$$224,000$ per year$],[$Units produced and sold,$27,500$ units$]]$

Prepare an income statement for the year using absorption costing

Prepare an income statement for the year using variable costing.