Skinny Dippers Inc. produces nonfat frozen yogurt. The product is sold in tengallon containers, which have the following price and variable costs. Sales price $50 Direct material 13 Direct labor 12 Variable overhead 12 Budgeted xed overhead in 20x1, the company's rst year of operations, was $400,000. Actual production was 200,000 ten-gallon containers, of which 190,000 were sold. Skinny Dippers Inc. incurred the following selling and administrative expenses. Fixed $408,300 for the year Variable $ 2 per container sold 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. Compute the product cost per container of frozen yogurt under (a) variable costing and (b) absorption costing. Per Unit Product Cost a. Variable costing b. Absorption costingSKINNY DIPPERS INC. Absorption-Costing Operating Income Statement For the Year Ended December 31, 20X1 Sales revenue Less: Cost of goods sold Gross margin $ 0 Selling and Administrative Expenses Fixed selling and administrative LLLL Variable selling and administrative Operating income 69 0SKINNY DIPPERS INC. Variable-Costing Operating Income Statement For the Year Ended December 31, 20X1 Sales revenue Variable expenses: Variable manufacturing costs Variable selling and administrative costs Contribution margin 0 Fixed expenses: Fixed selling and administrative expenses Fixed manufacturing overhead Operating income $Cost of goods sold under absorption costing Variable manufacturing costs under variable costing Subtotal 69 0 Fixed manufacturing overhead as period expense under variable costing Total 0 Operating income under variable costing Less: Operating income under absorption costing Difference in operating income 0Reconcile 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