K Game Spot manufactures video games that it sells for $37 each. The company uses a fixed manufacturing overhead allocation rate of $5 per game. Assume all costs and production levels are exactly as planned. The following data are from Game Spot's first two months in business: (Click the icon to view the data.) Read the requirements. Requirement 1. Compute the product cost per game produced under absorption costing and under variable costing. October Novembe Absorption costing Net Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Costs Operating Income $ Total product cost per game Requirement 2a. Prepare monthly income statements for October and November, including colum $ Variable costing 22 $ Demodocs example Get more help. Game Spot Absorption Costing Income Statement October November Absorption costing 66,600 $ 9000 17 $ 22 $ Variable costing 111,000 $ 15000 Total E 177,600 24000 17 Data table Sales Production Variable manufacturing cost per game Sales commission cost per game Total fixed manufacturing overhead Total fixed selling and administrative costs Print $ October 1,800 units 2,500 units 17 S 3 Done 12,500 11,500 November 3,000 units 2,500 units 17 3 12,500 11,500

ecacly as plamed. The folowing data are from Came Spofs frut two months in business: (Cick the icon lo vew the dala) Read the rovicerects Requirement 1. Combule the product cost per game produced under absorpton cossing and under vasiable costing. Data table 1. Compute the product cost per game produced under absorption costing and under variable costing. 2. Prepare monthly income statements for October and November, including columns for each month and a total column, using these costing methods: a. absorption costing. b. variable costing. 3. Is operating income highor under absorption costing or variable costing in October? In November? Explain the pattern of differences in operating income based on absorption costing versus variable costing. 4. Determine the balance in Finished Goods Inventory on October 31 and November 30 under absorption costing and variable costing. Compare the differences in inventory balances and the differences in operating income. Explain the differences in inventory balances based on absorption costing versus variable costing