8-32 Straightforward Problem on Absorption versus Varlable Costing (LO 8-2, 8-3, 8-4) 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 $54 Direct material Direct labor 20 Variable overhead 13 12 Budgeted fixed overhead in 20x1, the company's first year of operations, was $480,000. Actual production was 160.000 ten-gallon containers, of which 144,000 were sold. Skinny Dippers Inc. Incurred the following selling and administrative expenses. Fixed Variable $320,000 for the year $ 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 diffe 4. Reconcile the operating income reported under the two methods using the shortcut method. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 20 Reg 3 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 costing 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3 Req 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 Selling and Administrative Expenses $ $ 0 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 state 4. Reconcile the operating income reported under the two methods using the shortcut method. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Rec B Req 3 Req 4 Prepare an operating income statement for 20x1 using variable costing. SKINNY DIPPERS INC. Variable-Costing Operating Income Statement For the Year Ended December 31, 20X1 Variable expenses: Fixed expenses $ 0 $ 0 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 281 Req 3 Req 4 Reconcile the operating income reported under the two methods by listing the two key places where the income statements differ. Subtotal Total $ $ 0 Difference in operating income $ 0 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req 3 Req 4 Reconcile the operating income reported under the two methods using the shortcut method. Change in inventory (in units) units Predetermined foxed overhead rate per unit Difference in reported operating income