P6-66A (similar to) Question Help Larry's Foods produces frozen meals, which it sells for $8 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 EES Click the icon to view the data) Read the requirements * Requirements W 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 on absorption costing versus variable costing. Print Done IS II business i Data Table January 1,100 meals February 1,300 meals Sales. Production. 1.500 meals 1.200 meals $5 $5 91 $1 Variable manufacturing expense per meal. Sales commission expense per meal. Total fixed manufacturing overhead Total fixed marketing and administrative expenses 6900 9.900 $600 S600 . Print Done Answer quirement 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 Absorption Variable costing costing otal product cost N