Ned's Entrees 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 .... Ned's Entrees Income Statement (Absorption Costing) Month Ended January 31 February 28 Less: Less: Requirement 2b. Prepare Ned's Entrees' January and February income statements using variable costing. Ned's Entrees 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 Land an abestian Astina VAPALIA Ariable natin Data Table January February 1,000 meals 1,200 meals 1,500 meals 800 meals $4 $4 Sales.. Production.. Variable manufacturing expense per meal.. Sales commission expense per meal.. Total fixed manufacturing overhead Total fixed marketing and administrative expenses $2 $2 $600 $600 $500 $500 Print Done