Nicky's Entrees produces frozen meals, which it sells for $10 each. The company uses the FIFO inventory conting method, and it computers 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 Absorption Variable Absorption Variable costing costing costing costing Total product COSE 5.00 5.00 Requirement 2a. Prepare aparato monthly income statements for January and for February, using absorption costing (Check your spelling carefully and do not abbreviate) Nicky's Entrees Income Statement (Absorption Costing) Enter any number in the edit fields and then continue to the next question Nicky'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. Requirement 2a. Prepare separate monthly income statements for January and for February, using absorption conting (Check your spelling carefully and do not abbreviate Nicky's Entrees Income Statement (Absorption Costing) Month Ended January 31 February 28 Less Less Enter any number in the edit fields and then continue to the next question Nicky's Entrees produces frozen meals, which it sells for $10 each. The company uses the FIFO inventory costing method, and it compute manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as plar from the company's first two months in business (Click the icon to view the data.) Read the requirements Less Operating income (loss) Requirement 2b. Prepare Nicky's Entrees' January and February income statements using variable costing (Check your spelling carefully Nicky's Entrees Contribution Margin Income Statement (Variable Costing) Month Ended January 31 February 28 Less Enter any number in the edit fields and then continue to the next question ICON VIEW Read the requirements. January 31 February 28 Less Less nnetine income Operating income 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 Absorption costing defers some of costs in the units of ending inventory. These costs will not be until those units are sold Deferring these costs to the future January's absorption costing income In February, absorption costing operating Income the month variable costing operating income This is because units produced were units sold for CA es produces frozen meals, which it sells for $10 each. The company uses the FIFO inventory costing method, and it computes a new monthly g overhead rate base planned. The followin pany's first two mont i Data Table .X icon to view the dat uirements come January 1,600 meals February 1.800 meals Sales. 13. Is operating inco don absorption costi Production. 2.000 meals of differences in opera 1.600 meals $5 $5 bsorption costing op $2 $2 units sold. Variable manufacturing expense per meal. Sales commission expense per meal.... Total fixed manufacturing overhead Total fixed marketing and administrative expenses. $800 $800 will not be osting defers some of its are sold Deferrin $400 $400 sting income absorption costing op Print Done re v units mber in the edit fields and then continue to the next question 04/18/21 11:59pm Chapter 10 HW o DOLL