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Marty's Entrees produces frozen meals, which it sells for $9 each. The company uses the FIFO inventory costing method, and it computes a new, monthly, fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned.
The following data are from Marty's Entrees' first two months in business: January-February Sales Production Variable manufacturing expense per meal Sales commission expense per meal Total fixed manufacturing overhead Total fixed marketing & administrative expenses 1,400 meals 2,000 meals $5 $1 $700 $500 1,800 meals 1,400 meals $5 $1 $700 $500Compute the product cost per meal produced under absorption costing and under variable costing.
Based on the given information, answer the following questions:
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