P6-66A (similar to) Louie's Meals produces frozen meals, which it sells for $8 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed man 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 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 Data Table Absorption Variable costing costing Total product cost January February Sales... 1,400 meals 1,800 meals 2,000 meals 1,600 meals Production S 3 3 Variable manufacturing expense per meal. 1 Sales commission expense per meal. 800 800 Enter any number in the edit fields and then click Che Total fixed manufacturing overhead 400 400 Total fixed marketing and administrative expenses Q parts