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.

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Answer 1

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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.

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Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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.

Expert Solution & Answer

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See solution

Answer 5

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.

Answer 6

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.

Answer 7

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.

Answer 8

(b)

To determine

the total manufacturing cost per unit.

Answer 9

(b)

To determine

the total manufacturing cost per unit.

Answer 10

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.

Answer 11

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.

Answer 12

3.

To determine

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

Answer 13

3.

To determine

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

Answer 14

4.

To determine

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

Answer 15

4.

To determine

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

Answer 16

5.

To determine

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

Answer 17

5.

To determine

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

Answer 18

6.

To determine

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

Answer 19

6.

To determine

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

Answer 20

Expert Solution & Answer

Answer 21

Expert Solution & Answer

Answer 22

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Answer 23

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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.

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.

the total manufacturing cost per unit.

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

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

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

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

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

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Chapter 9 Solutions

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.