Margarita's Foods produces frozen meals that it sells for $15 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 production levels are exactly as planned. The following data are from Margarita's Foods's first month in business: E: (Click the icon to view the data.) Read the requirements .... X 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 Margarita's Foods's January income statement using absorption costing. Margarita's Foods Income Statement (Absorption Costing) Month Ended January 31, 2018 1. Compute the product cost per meal produced under absorption costing and under variable costing. 2. Prepare income statements for January 2018 using: a. absorption costing. b. variable costing. 3. Is operating income higher under absorption costing or variable costing in January? Data table Print Done January 2018 Operating Income Units produced and sold: Sales 1,000 meals Requirement 2b. Prepare Margarita's Foods's January income statement using variable costing. Margarita's Foods Income Statement (Variable Costing) Month Ended January 31, 2018 Production 1,200 meals $ 6 3 Variable manufacturing cost per meal Sales commission cost per meal Total fixed manufacturing overhead Total fixed selling and administrative costs 660 750 Operating Income Print Done 1 Requirement 3. Is operating income higher under absorption costing or variable costing in January? In January, absorption costing operating income variable costing operating income