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:

Variable Cost per Hula Skirt Direct materials Direct labor Variable manufacturing overhead Variable selling and aministrative expenses $ 10.35 4.15 1.30 60 Fixed Cost per Month Fixed manufacturing overhead Fixed selling and administrative expenses $19,125 5,700 Dance Creations charges $34 for each skirt that it sells. During the first month of operation, it made 1,700 skirts and sold 1,525 Required 1. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. (Round your answer to 2 decimal places.) Total Variable Mfg Cost/Unit $ 15.80 2. Complete a variable costing income statement for last month. (Round your answers to 2 decimal places.) Dance Creations Contribution Margin Income Statement For the Last Month Sales revenue Contribution margin Net Operating Income 3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for last month. (Round your intermediate calculations to 2 decimal places. Round your answer to 2 decimal places.) Total Absorption Cost/Unit 4. Complete a full absorption costing income statement. (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.) Dance Creations Full Absorption Income Statement For Last Month Less: Cost of Goods Sold Gross Margin Net Operating Income 6. Suppose next month Dance Creations expects to produce 1,200 hula skirts and sell 1,300. without any calculations, decide whether variable or ful absorption costing will show a higher protit. Full Absorption Costing Variable Costing