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 administrative expenses Fixed Cost per Month Fixed manufacturing overhead Fixed selling and administrative expenses 9.85 3.65 1.30 0.70 $16,125 5,200 Dance Creations charges $32 for each skirt that it sells. During the first month of operation, it made 1,600 skirts and sold 1,460. 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 1,600 hula skirts and sell 1,700. Without recreating the new income statements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 6 Complete a variable costing income statement for last month. Dance Creations Contribution Margin Income Statement For the Last Month Sales Revenue 46,720 Variable Costs 21,608 x Beginning Inventory 25,112 X Variable Selling Expenses 1,022 x Contribution margin 24,090 Fixed Costs Fixed Manufacturing Overhead 16,125 x Fixed General and Administrative Expense 5,200 Net Operating Income $ 2,765 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 6 Complete a full absorption costing income statement. (Round your intermediate calculations to 2 decimal places.) Dance Creations Full Absorption Income Statement Sales Revenue Cost of Goods Sold For Last Month $ 46,720 36,325 Gross Margin 10,395 Selling and Administrative Expenses 6,222 Net Operating Income $ 4,173 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 6 Suppose next month Dance Creations expects to produce 1,600 hula skirts and sell 1,700. 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 $ 1,408 Which would be higher? Variable Costing