Complete the requirements:

Stella's Foods produces frozen meals that it sells for $8 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 Stella's Foods's first month in business:

Requirement 1. Compute the product cost per meal produced under absorption costing and under variable costing. (Round your answers to the nearest cent.) January 2018 Absorption Variable i Data Table costing costing Total product cost per meal Requirement 2a. Prepare Stella's Foods's January income statement using absorption costing. January 2018 Stella's Foods Units produced and sold: Income Statement (Absorption Costing) 950 meals Sales Month Ended January 31, 2018 1,150 meals Production Variable manufacturing cost per meal 4 Sales commission cost per meal 1 Total fixed manufacturing overhead 690 600 Total fixed selling and administrative costs Operating Income Print Done Requirement 2b. Prepare Stella's Foods's January income statement using variable costing. Stalla's Foode Requirement 2b. Prepare Stella's Foods's January income statement using variable costing Stella'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 variable costing operating income