Skinny Dippers Inc. produces nonfat frozen yogurt. The product is sold in tengallon containers. which have the following price and variable costs. Sales price $46 Direct material 17 Direct labor 11 Variable overhead 18 Budgeted fixed overhead in 20x1, the company's first year of operations, was $600,000. Actual production was 200,000 tengallon containers, of which 190,000 were sold. Skinny Dippers Inc. incurred the following selling and administrative expenses. Fixed $288,088 for the year Variable $ 3 per container 501d Required: 1. Compute the product cost per container of frozen yogurt under (a) variable costing and (b) absorption costing. 2-a. Prepare an operating income statement for 20x1 using absorption costing. 2-b. Prepare an operating income statement for 20x1 using variable costing. 3. Reconcile the operating income reported under the two methods by listing the two key places where the income statements differ. 4. Reconcile the operating income reported under the two methods using the shortcut method. \fReq 1 Req 2A Req 2B Req 3 Reg 4 Prepare an operating income statement for 20x1 using absorption costing. SKINNY DIPPERS INC. Absorption-Costing Operating Income Statement For the Year Ended December 31, 20X1 Sales revenue $ 8,740,000 V Less: Cost of goods sold V (7,790,000) V Gross margin V $ 950,000 Selling and Administrative Expenses Fixed selling and administrative V (200,000) V Variable selling and administrative V (570,000) V Operating income V $ 180,000\fReq 1 Req 2A Reg 23 Reg 3 Req 4 Reconcile the operating income reported under the two methods by listing the two key places where the income statements differ. Cost of goods sold under absorption costing a $ {570,000} a Van'able manufacturing costs under variable costing 9 Subtotal $ {570,000} Total $ {570.000} Difference in operating income $ 0 Reg 1 Reg ZA Reg 23 Reg 3 Req 4 Reconcile the operating income reported under the two methods using the shortcut method. Change in inventory (in units} Predetermined fixed overhead rate Difference in reported operating income units per unit