i Data Table X January February Sales . . . . . . . . 1,500 meals 1,800 meals Production . . .. 2,000 meals 1,600 meals Variable manufacturing expense per meal. . . . . . . . . . . * Sales commission expense per meal. Total fixed manufacturing overhead 800 800 Total fixed marketing and administrative expenses 400 400 Print Done Mark's Meals produces frozen meals, which it sells for $10 each. The company uses the FIFO nvertory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All coats and production levels are macly as planned. The following dia are from Fa company's first two months in business: Click the icon to view the data.) wiramants Compute the product cost per meal produced under absorption costing and under wrishis coating. Do this first for January and than for February can't sopanine monthly income statements for January and for February, using the fo lowing: Is operating income higher ur February? Explain the palam of afew wereas variable costing Requirement 1. Compute the product cost per maal produced under absorption casting and under variable casting. Do this first fer January and than for February January February Absorption Variable Absorption Variable costing costing otal product cost Requirement 2a. Prepare ampere's monthly income simiements for January and for February, using absorption coming. Mark's Moals Income Statement [Absorption Costing) Month Ended January 31 February 28 Mark's Meals Contribution Margin Income Statement (Variable Costing) Month Ended January 31 February 28 Loss: Requirement 3. Is operating income higher under absorption costing or variable costing in January? In February? Explain the pattern of differences in operating income based on absorption costing versus variable coding In January, absorption costing operating Income variable costing Income. This is because units produced ware units sold. Absorption costing defers some of costs in the units of ending inventory. These costs will not be W until those units are sold. Deferring these costs to the future January's absorption costing income. In February, absorption costing operating income variable costing operating income. This is because units produced were units sold for the month. As inventory Was was the case in this February, January's costs that absorption costing assigned to that inventory and expensed in . This February's absorption costing income