The variable manufacturing costs per unit of TC Motors are: April May Direct material cost per unit...................$6,700..........$6,700

Question:

The variable manufacturing costs per unit of TC Motors are:
April May
Direct material cost per unit...................$6,700..........$6,700
Direct manufacturing labour cost per unit.....1,500............1,500
Manufacturing overhead cost per unit.........1,800............1,800
Required
1. Prepare operating statements of comprehensive income for TC Motors in April and May of 2015 under throughput costing.
2. Contrast the results in requirement 1 with those in requirement 1 of Exercise 9-16.
3. Give one motivation for TC Motors to adopt throughput costing.