Rey Company's only product sells for $236 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 $ 40 per unit $ 48 per unit $ 4 per unit $ 141,000 per year $ 38 per unit $ 240,000 per year 23,500 units. 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using absorption costing. REY COMPANY Income Statement (Absorption Costing) Sales $ 5,546,000 Cost of goods sold Gross profit 2,303,000 3,243,000 Selling and administrative expenses Income $ 3,243,000 Required 1 Required 2 > Required 1 Required 2 Prepare an income statement for the year using variable costing. Sales REY COMPANY Income Statement (Variable Costing) Income < Required 1 141,000 240,000 $ 5,546,000 $ 381,000 2,110,000 0