O op Game Time manufactures video games that it sells for $40 each. The company uses a feed manufacturing overhead allocation rate of $6 per game. Assume al costs and production levels are exactly as planned. The following data are from Game Time's first two months in business during 2018 Click the icon to view the data) Read the requirements Requirement 1. Compute the product cost per game produced under absorption costing and under variable costing October 2018 November 2010 Absorption Absorption Variable costing costing Gosting costing Total product cost per game $ 18 $ 125 18 $ Requirement 2a. Prepare monthly income statements for October and November, including columns for each month and a total column, using absorption costing Game Time Absorption Costing Income Statement October 2018 November 2018 Total Operating income Choose from any list or enter any number in the input fields and then click Check Answer parts Clear All Check A Game Time manufactures video games that it sells for $40 each. The company uses a fixed manu Game Time's first two months in business during 2018: (Click the icon to view the data.) Read the requirements. Requirement 1. Compute the product cost per game produced under absorption costing and under October 2018 November 2018 Variable Absorption Variable costing costing $ 18 $ 12 Absorption costing 18 $ Total product cost per game costing 12 Requirement 2a. Prepare monthly income statements for October and November, including columns Game Time Absorption Costing Income Statement October 2018 November 2018 Total Contribution Margin Cost of Goods Sold Fixed Costs Gross Profit Net Sales Revenue Selling and Administrative Costs Variable Costs parts remaining mber in the input fields and then click Check Answer. 6 esc 00 000 lomework 2 of 3 (3 complete) uch. The company uses a fixed manufacturing overhead allocation rate of $6 per game. Assume all costs and pro Requirements - - X d under absor N Absor costi 2 $ a. ober and Nov 1. Compute the product cost per game produced under absorption costing and under variable costing. 2. Prepare monthly income statements for October and November, including columns for each month and a total column, using these costing methods: absorption costing. b. variable costing. 3. Is operating income higher under absorption costing or variable costing in October? In November? Explain the pattern of differences in operating income based on absorption costing versus variable costing. 4. Determine the balance in Finished Goods Inventory on October 31 and November 30 under absorption costing and variable costing. Compare the differences in inventory balances and the differences in operating income. Explain the differences in inventory balances based on absorption costing versus variable costing. ment ember 2018 Print Done and then click Check Answer. omework 2 of 3 (3 complete) Eh. The company uses a fixed manufacturing overhead allocation rate of $6 per game. Assume all costs and production levels are d under abs i Data Table -X Abs cd November 12 $ October 1,300 units Sales 2,500 units ober and N 2,400 units 2,400 units $ 12 $ 12 Production Variable manufacturing cost per game Sales commission cost per game Total fixed manufacturing overhead Total fixed selling and administrative costs 6 6 ement vember 2011 14,400 14,400 7,500 7,500 Print Done ds and then click Check Answer. Clear All