Exercise 6-5 Absorption costing and variable costing income statements LO P2 Rey Company's single product sells at a price of $217 per unit. Data for its single product for its first year of operations follow. Direct materials Direct labor Overhead costs 21 per unit 29 per unit Variable overhead Fixed overhead per year 7 per unit $189,000 per year Selling and administrative expenses Variable Fixed 19 per unit S202,000 per year Units produced and sold 21,000 units 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing Required Required 2 Prepare an income statement for the year using absorption costing. REY COMPANY Absorption Costing Income Statement Net income (loss) Prepare an income statement for the year using variable costing. REY COMPANY Variable Costing Income Statement Net income (loss) Required 1 Required 2