3.5 2 PA5-7 (Static) Comparing Full Absorption and Variable Costing [LO 5S-1] points View previous attempt Check m Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: Variable Cost per Hula Skirt Direct materials Direct labor Variable manufacturing overhead eBook Print References Fixed manufacturing overhead Variable selling and administrative expenses Fixed Costs per Month Fixed selling and administrative expenses $ 9.60 3.40 1.05 0.40 $ 16,125 4,950 Dance Creations charges $30 for each skirt that it sells. During the first month of operation, it made 1,500 skirts and sold 1,375. Required: 1. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. 2. Complete a contribution margin income statement for the last month. 3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month. 4. Complete a full absorption costing income statement. 6. Suppose next month Dance Creations expects to produce 1,500 hula skirts and sell 1,600. Without recreating the new income statements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 6 3.5 2 points 4. Complete a full absONPLION COSung income Statement. 6. Suppose next month Dance Creations expects to produce 1,500 hula skirts and sell 1,600. Without recreating the ne statements, calculate the difference in profit between variable costing and full absorption costing. Which would be hig Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 6 eBook Print References Complete a contribution margin income statement for last month. Note: Round your answers to 2 decimal places. Dance Creations Contribution Margin Income Statement For the Last Month Contribution Margin Net Operating Income < Required 1 Required 3 > 3.5 2 Complete this question by entering your answers in the tabs below. points Required 1 Required 2 Required 3 Required 4 Required 6 eBook Print References Complete a full absorption costing income statement. Note: Do not round your intermediate calculations. Dance Creations Full Absorption Income Statement For Last Month Sales Revenue Beginning Inventory Cost of Goods Sold Gross Margin Net Operating Income < Required 3 Required 6 > View previou