This quiz: 1 point(s) possible @ This question: 1 point(s) possible = Quiz: Chapter M:6 Quiz Question 1 of 1 Submit quiz = . Margarita's Foods produces frozen meals that it sells for $8 each. The company computes a new monthly fixed manufacturing overhead allocation rate based on the planned number of meals to be QUeStlon ||St | produced that month. Assume all costs and production levels are exactly as planned. The following data are from Margarita's Foods's first month in business: EH (Click the icon to view the data.) Question 1 Read the requirements. Requirement 1. Compute the product cost per meal produced under absorption costing and under variable costing. (Round your answers to the nearest cent.) Absorption Variable costing costing Total product cost per meal Requirement 2a. Prepare Margarita's Foods's January income statement using absorption costing. Margarita's Foods Income Statement (Absorption Costing) Month Ended January 31 s Operating Income Requirement 2b. Prepare Margarita's Foods's January income statement using variable costing. Margarita's Foods Income Statement (Variable Costing) Month Ended January 31 - 1] I | T Operating Income I;l Requirement 3. Is operating income higher under absorption costing or variable costing in January? In January, absorption costing operating income variable costing operating income. Data table January Units produced and sold: Sales 1,000 meals Production 1,400 meals Variable manufacturing cost per meal $ 4 Sales commission cost per meal 1 Total fixed manufacturing overhead 700 Total fixed selling and administrative costs 450 D Contribution Margin ells for $8 each. The company computes ction levels are exactly as planned. The f Cost of Goods Sold Fixed Costs Gross Profit Net Sales Revenue nuary income statement using absorption Selling and Administrative Costs 1g) Variable Costs Operating Income