Skinny Dippers, Inc. produces nonfat frozen yogurt. The product is sold in ten-gallon containers, which have the following price and variable costs. Sales price Direct material Direct labor Variable overhead $46 17 11 10 10 Budgeted fixed overhead in 20x1, the company's first year of operations, was $600,000. 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 Variable $200,000 for the year $ 3 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 operating income statements for 20x1 using absorption costing. 2-b. Prepare operating income statements 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. Req 1 Req 2A Req 2B Req 3 Req 4 Prepare operating income statements for 20x1 using variable costing. SKINNY 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 Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses Operating income Req 1 Req 2A Req 2B Req 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 Variable manufacturing costs under variable costing Subtotal Fixed manufacturing overhead as period expense under variable costing Total Operating income under variable costing Less: Operating income under absorption costing Difference in operating income $