Exercise 19-5 Absorption costing and variable costing income statements LO P2 Rey Company's single product sells at a price of $229 per unit. Data for its single product for its first year of operations follow. Direct materials Direct labor Overhead costs 33 per unit 41 per unit Variable overhead Fixed overhead per year 11 per unit $ 351,000 per yean Selling and administrative expenses Variable Fixed 31 per unit $ 226,000 per year Units produced and sold 27,000 units 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing