Variable vs Absorption Costing Nerdzy Computer company has been operating for a couple of years now and decided to do away with its desktop computer production. It now only sells laptops. Recent company data reveals that under the current sales mix, the weighted average sales price per unit is 373 and the weighted-average variable cost per unit is 62. The company does not expect the sales mix to vary for the next year. Assume the beginning balance in finished goods inventory is $0. Additional data for the first month of the year show: JAN Units produced and sold: Sales Production Variable manufacturing cost per unit Sales commission cost per unit Total fixed manufacturing overhead 1,025 units 1,200 units 62 12 93,600 Total fixed selling and administrative costs 62,400 Requirements 2a. Compute the poduct cost per unit produced under absorption costing and under variable costing. 2b. Prepare income statements for January using: 2b1. absorption costing. 2b2. variable costing. 2c. Is operating income higher under absorption costing or variable costing in January? What causes the difference? 2a. Compute the product cost per unit produced under absorption costing and under variable costing. Absorption Variable Costing Costing Variable Manufacturing cost Fixed MOH Total unit product cost 2b. Prepare income statements for January using 2b1. absorption costing. Nerdzy Computer Co. Income Statement Month ended January 20XX Net Sales Revenue Cost of Goods Sold Gross Profit Selling & Admin Costs Operating Income 2b2. variable costing. Nerdzy Computer Co. Income Statement Month ended January 20XX Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income 2c. Is operating income higher under absorption costing or variable costing in January? What causes the difference