Gla's Foods produces frozen meals that it sells for $6 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 $a production levels are exactly as planned. The following data are from Gia'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 Variable costing costing Total product cost per meal Requirement 2a. Prepare Gia's Foods's January income statement using absorption costing. Gia's Foods Income Statement (Absorption Costing) Month Ended January 31 Cost of Goods Sold Variable Costs 2 - X Fixed Costs 1 1 Requirements Cost of Goods Sold 3 Operating Income Requirement 2b. Prepare Gla's Foods's January income statement using variable costing Gia's Foods Income Statement (Variable Costing) Month Ended January 31 Variable Costs 1. Compute the product cost per meal produced under absorption costing and under variable costing. 2. Prepare income statements for January using: a. absorption costing. b. variable costing. . 3. Is operating income higher under absorption costing or variable costing in January? X Contribution Margin Data table Cost of Goods Sold January Operating Income Units produced and sold: Requirement 3. Is operating income higher under absorption costing or variable costing in January? Sales In January, absorption costing operating income is less than variable costing operating income. Production Variable manufacturing cost per meal Sales commission cost per meal Total fixed manufacturing overhead Total fixed selling and administrative costs 1,000 meals 1,400 meals 2 1 700 550 Print Done