Sales. Production. Variable manufacturing expense per meal Sales commission expense per meal . Total fixed manufacturing overhead Total fixed marketing and administrative expenses s s January 1 ,500 meals 2,000 meals 3 700 400 s s February 1 ,700 meals I ,400 meals 3 700 400 Larry's Foods produces frozen meals, which it sells for $7 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months in business: Requirement 1. Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February Total roduct cost Janua Absorption Costin $3.35 Variable Costing Costin $3.00 Februa Absorption Costin $3.50 Variable Costin $3.00 Re uirement 2a. Pre are se arate monthl income statements for Janua Larry's Foods Income Statement (Absorption Costing) Sales revenue Less: Cost of goods sold Gross profit Month Ended January 31 $10,500 5,025 5,475 and for Februa , using absorption costing. February 28 $11,900 5,875 6025