Clarita's Foods produces frozen meals that it sells for $13 each. The company computes a new monthly fixed manufacturing overhead allocation rate based on the planned number of meals to be produced that month. Assume all costs and production levels are exactly as planned. The following data are from Clarita's Foods's first month in business: (Click the icon to view the data.) Read the requirements. Requirement 1. Compute the product cost per meal produced under absorption costing and under variable costing. (Round your answers to the nearest cent.) Absorption costing Variable costing Total product cost per meal Requirement 2a. Prepare Clarita's Foods's January income statement using absorption costing. Clarita's Foods Income Statement (Absorption Costing) Month Ended January 31 Operating Income Data table Units produced and sold: January Sales Production Variable manufacturing cost per meal Sales commission cost per meal Total fixed manufacturing overhead 1,000 meals 1,400 meals 6 2 700 Total fixed selling and administrative costs 350 - Operating Income Requirement 2b. Prepare Clarita's Foods's January income statement using variable costing. Clarita's Foods Income Statement (Variable Costing) Month Ended January 31 Units produced and sold: Sales Production Variable manufacturing cost per meal January 1,000 meals 1,400 meals 6 2 700 Total fixed selling and administrative costs 350 Sales commission cost per meal Total fixed manufacturing overhead Operating Income Requirement 3. Is operating income higher under absorption costing or variable costing in January? In January, absorption costing operating income variable costing operating income. Print Done