Mark's Meals produces frozen meals, which it sells for $10 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months 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. Do this first for January and then for February. January February - X Absorption Variable Absorption Variable Data table costing costing costing costing Total product cost $ 5.75 $ 5.00 $ 5.80 $ 5.00 January February Requirement 2a. Prepare separate monthly income statements for January and for February, using absorption costing. Sales. . . . . . . . 1,300 meals 1,700 meals Mark's Meals Production . . . 1,600 meals 1,500 meals Income Statement (Absorption Costing) Variable manufacturing expense per meal . . . . . . . $5 $5 Month Ended Sales commission expense per meal . $1 $1 January 31 Total fixed manufacturing overhead . . . . . . . $1,200 $1,200 Sales revenue Total fixed marketing and administrative expenses $800 $800 Less: Cost of goods sold Gross profit - X Less: Operating expenses Requirements Operating income 1. Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February. 2. Prepare separate monthly income statements for January and for February, using the following: a. Absorption costing b. Variable costing. 3. Is operating income higher under absorption costing or variable costing in Help me solve this Get more help - January? In February? Explain the pattern of differences in operating income Video Check answer based on absorption costing versus variable costing