Read the requirements. Data table Requirement 1. Compute the product cost per game produced under absorption costing and under variable costing. Requirement 2a. Prepare monthly income statements for October and November, including columns for each month and a total column, using absorption costing. Requirements 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. Requirement 2b. Prepare monthly income statements for October and November, including columns for each month and a total column, using 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. Requirement 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. In October, the operating income is higher under costing. The primary reason for this is that are distributed across the entire production of fixed manufacturing overhead costs are In November, the operating income is higher under costing. The primary reason for this is because of fixed manufacturing overhead that is contained in the units in ending inventory under ] As inventory as was the case in November, October's costs that absorption costing assigned to that inventory are expensed in This November's absorption costing income. balances based on absorption costing versus variable costing. The higher inventorv balance under is representative of the Under absorption costing, the difference in the product cost per game is , whereas under variable costing, the difference in the product cost per game is