Check my worl 2. PA5-6 (Static) Comparing Full Absorption and Variable Costing (LO 5S-1) 3 points Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: $ eBook Variable Cost per Hula Skirt Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses 9.60 3.40 1.05 0.40 Ask Fixed Cost per Month Fixed manufacturing overhead Fixed selling and administrative expenses $16, 125 4,950 Print Dance Creations charges $30 for each skirt that it sells. During the first month of operation, it made 1,500 skirts and sold 1,375. References Required: 1. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. 2. Complete a variable costing income statement for the last month. 3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month. 4. Complete a full absorption costing income statement. 6. Suppose next month Dance Creations expects to produce 1,500 hula skirts and sell 1,600. Without recreating the new income statements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher? 2 Complete this question by entering your answers in the tabs below. 3 points Required 1 Required 2 Required 3 Required 4 Required 6 Complete a variable costing income statement for last month. (Round your answers to 2 deci eBook Ask $ 41,250.00 (19,318.75) 550.00 Print Dance Creations Contribution Margin Income Statement For the Last Month Sales Revenue Beginning Inventory Cost of Goods Sold Ending Inventory Contribution Margin Variable Selling Expenses Fixed Manufacturing Overhead Fixed General and Administrative Expense Net Operating Income References 21,381.25 16,125.00 4,950.00 $ 306.25 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 6 Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for last month. (Round your answer to 2 decimal places.) Total Absorption Cost/Unit 2 Complete this question by entering your answers in the tabs below. 3 points Required 1 Required 2 Required 3 Required 4 Required 6 Complete a full absorption costing income statement. (Round your intermediate calculations and the final answers to 2 decimal places.) eBook Dance Creations Full Absorption Income Statement For Last Month Ask Print References Gross Margin Net Operating Income Required 1 Required 2 Required 3 Required 4 Required 6 Suppose next month Dance Creations expects to produce 1,500 hula skirts and sell 1,600. Without recreating the new income statements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher? Difference in profit Which would be higher