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Game Play manufactures video games that it sells for $45 each. The company uses a fixed manufacturing overhead allocation rate of $6 per game. Assume all costs and production levels are exactly as planned. The following data are from Game Play's first two months in business: (Click the icon to view the data.) Read the requirements X Requirements Requirement 1. Compute the product cost per game produced under absorption costing and unde Data Table October November Absorption Variable Absorption Variable costing costing costing $ 17 S costing 17 S October November Total product cost per game 11 $ 11 Sales 1.600 units 2.500 units Requirement 2a. Prepare monthly income statements for October and November, including colum Production 2,300 units 2,300 units Game Play Variable manufacturing cost per game S 11 S 11 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: a. 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. Absorption Costing Income Statement Sales commission cost per game 3 3 October November Total 13,800 13.800 Total fixed manufacturing overhead Total fixed selling and administrative costs 10,500 10.500 Print Done Print Done Operating Income Afrolit bai the fields and bibel AS