Exercise $6-9($Algo$)$ Absorption costing and variable costing income statements LO P$2$

Rey Company's only product sells for $$233$ per unit. Data for its first year of operations follow.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

Units produced and sold

$$37$ per unit

$$45$ per unit

$$7$ per unit

$$225,000$ per year

$$35$ per unit

$$234,000$ per year

$25,000$ units

Prepare an income statement for the year using absorption costing

Prepare an income statement for the year using variable costing.

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