60.1K

Verified Solution

Link Copied!

Show Answer On ENTIRE SCREEN

Rosetta's Foods produces frozen moals that it sells for $15 each. The company computes a new monthly fixed manufacturing overhead allocation rate based on the ng planned number of meals to be produced that month. Assume all costs and production levels are exactly as planned. The following data are from Rosetta's Foods's first month in business m Click the icon to view the data) Read the requirements ata. Data Table od answe January 2018 Units produced and sold: Sales 950 meals Production 1,150 meals ta's 6 Fod 3 So Variable manufacturing cost per meal Sales commission cost per meal Total fixed manufacturing overhead Total fixed selling and administrative costs 6901 sual 700 Print Done 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 Rosetta's Foods's January income statement using absorption costing. Rosetta's Foods Income Statement (Absorption Costing) Month Ended January 31, 2018 Operating Income Requirement 2b. Prepare Rosetta's Foods's January income statement using variable costing. Rosetta's Foods Income Statement (Variable Costing) Month Ended January 31, 2018 Operating Income Requirement 3. Is operating income higher under absorption costing or variable costing in January? In January, absorption costing operating income variable costing operating income

Answer & Explanation Solved by verified expert

See Answer