Video King manufactures video games that it was for $39 each. The company use a fixed manufacturing overhead location rate of St pergom Assume costs and production codymedThe folowing data are from Video King's first two months in business during 2018 D. Click the icon to www the data) Read the requirements Requirement 1. Compute the product cost per geproduced under absorption costing and under variable costing October 2018 Absorption Variable Gosting costing Total product cost per game Data Table e 20 M October November Sales 1,400 units 2,500 units 11 $ 2,600 units 2,500 units Production $ 11 Variable manufacturing cost per game Sales commission cost per game 3 10,000 10,000 Total fixed manufacturing overhead Total fixed selling and administrative costs 8,500 8,500 Print Done - -X Requirements a. 1. Compute the product cost per game produced under absorption costing and under variable costing. 2. Prepare monthly income statements for October and November, including columns for each month and a total column, using these costing methods: absorption costing. b. variable costing. 3. Is operating income higher under absorption costing or variable costing in October? In November? Explain the pattern of differences in operating income based on absorption costing versus variable costing. 4. Determine the balance in Finished Goods Inventory on October 31 and November 30 under absorption costing and variable costing. Compare the differences in inventory balances and the differences in operating income. Explain the differences in inventory balances based on absorption costing versus variable costing. Print Done