Chapter 9, Problem 9.41P

(1)(a)

To determine

The fixed manufacturing cost per unit

Given information:

2014,

The fixed manufacturing costs are $45,000,000.

The budgeted units of production are 3,000.

The standard manufacturing cost per unit is $58,800.

The budgeted fixed cost unit per month is $15,000.

(b)

To determine

the total manufacturing cost per unit.

2.

To determine

The monthly operating income for January, February, and March 2014 under absorption costing and the amount of bonus paid each month to F.

3.

To determine

The change in the bonus of each month by the use of variable costing.

4.

To determine

The difference in the bonus of H in requirements 2 and 3.

5.

To determine

To explain: The change in the bonus of H each month with the change of the throughput costing.

6.

To determine

To explain: The different approaches T could take to reduce possible undesirable behavior associated with the use of absorption costing.