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Play Zone manufacturas video games that it sets for $36 cach. The company uses a...

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Accounting

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Play Zone manufacturas video games that it sets for $36 cach. The company uses a foced manutacturing averhead allocation rate of $5 percjame Assume all obsts and prodiacian (Click the icon io virw the data) Read the cequiniment: Data table 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. 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

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