Clarita's Foods produces frozen meals that it sells for $9 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: January 2018 Units produced and sold: Sales 1,000 meals 1,200 meals Production Variable manufacturing cost per meal Sales commission cost per meal Total fixed manufacturing overhead Total fixed selling and administrative costs 660 800 Absorption Variable costing 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, 2018 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, 2018 Operating Income Requirement 3. Is operating income higher under absorption costing or variable costing in January? In January, absorption costing operating income V variable costing operating income