Mark's Meals produces frozen meals, which it sells for $7 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: E: (Click the icon to view the data.) Requirements 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 January? In February? Explain the pattern of differences in operating income based on absorption costing versus variable costing. 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 Absorption costing [ C Variable costing D Absorption costing I Variable costing Total product cost Requirement 2a. Prepare separate monthly income statements for January and for February, using absorption costing. Mark's Meals Income Statement (Absorption Costing) Month Ended January 31 February 28 Less: Less: Requirement 2b. Prepare Mark's Meals' January and February income statements using variable costing Mark's Meals Contribution Margin Income Statement (Variable Costing) Month Ended January 31 February 28 Less Less: 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 costing. In January, absorption costing operating income variable costing income. This is because units produced were units sold costs in the units of ending inventory. These costs will not be until those units are sold. Deferring these costs to the future | Absorption costing defers some of income. January's absorption costing In February, absorption costing operating income variable costing operating income. This is because units produced were units sold for the month. increases decreases As inventory as was the case in this February, January's costs that absorption costing assigned to that inventory are expensed in . This February's absorption costing income. i Data Table January 1,600 meals 2,000 meals 1,900 meals 1,600 meals Sales Production............ Variable manufacturing expense per meal............ Sales commission expense per meal................$ Total fixed manufacturing overhead ............... $ Total fixed marketing and administrative expenses .....$ $ 2 800 800 500

Underneath are pictures describing a total of 3 requirements. If the font is too small, the only way to make it bigger is by zooming in via the browser. If something is missing please tell me what exactly is missing from the question

Mark's Meals produces frozen meals, which it sells for $7 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: E: (Click the icon to view the data.) Requirements 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 January? In February? Explain the pattern of differences in operating income based on absorption costing versus variable costing. 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 Absorption costing [ C Variable costing D Absorption costing I Variable costing Total product cost Requirement 2a. Prepare separate monthly income statements for January and for February, using absorption costing. Mark's Meals Income Statement (Absorption Costing) Month Ended January 31 February 28 Less: Less: Requirement 2b. Prepare Mark's Meals' January and February income statements using variable costing Mark's Meals Contribution Margin Income Statement (Variable Costing) Month Ended January 31 February 28 Less Less: 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 costing. In January, absorption costing operating income variable costing income. This is because units produced were units sold costs in the units of ending inventory. These costs will not be until those units are sold. Deferring these costs to the future | Absorption costing defers some of income. January's absorption costing In February, absorption costing operating income variable costing operating income. This is because units produced were units sold for the month. increases decreases As inventory as was the case in this February, January's costs that absorption costing assigned to that inventory are expensed in . This February's absorption costing income. i Data Table January 1,600 meals 2,000 meals 1,900 meals 1,600 meals Sales Production............ Variable manufacturing expense per meal............ Sales commission expense per meal................$ Total fixed manufacturing overhead ............... $ Total fixed marketing and administrative expenses .....$ $ 2 800 800 500