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

Rey Company$$s only product sells for $$235$ per unit. Data for its first year of operations follow.

Direct materials $ $39$ per unit

Direct labor $ $47$ per unit

Variable overhead $ $5$ per unit

Fixed overhead $ $168,000$ per year

Variable selling and administrative expenses $ $37$ per unit

Fixed selling and administrative expenses $ $238,000$ per year

Units produced and sold $24,000$ units

$1.$ Prepare an income statement for the year using absorption costing

$2.$ Prepare an income statement for the year using variable costing.