Nicky's Entrees 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 date ! 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: it. Absorption exiting b. Variable: costing. 3. Is operating income higher under absorption costing of variable costing in January? In February? Explain the pattern of differences in operating income based on absorption costing versus variable costing. Less: Operating expenses 2,100 2.300 Operating income $ 1,875 S 2025 Requirement 2b. Proxirc Nicky's Entrees' January and February incorre Stalcmonts using variable costing, Nicky's Entrees Contribution Margin Income Statement (Variable Costing) Month Ended January 31 February 28 Data Table Sales revenue Less: January 1.500 meals February 1.700 meals Sales Variable operating expenses 2,000 meals 1.400 meals S 4 4 LORS: S 1 Production Variable manufacturing expense per meal Sales commission expense per meal Total fixed manufacturing overhead Total fixed marketing and administrative expenses S Fixed manufacturing overhead Fixed operating expenses 1 S 700 S 700 S 600 S 600 Operating income Choose from any list or enter any number in the input fields and then click Check Answer. Print Done