Finish-It-Yourself Furniture Company Manufactures Replicas of Antique Oak Filing Cabinets

Finish-It-Yourself Furniture Company manufactures replicas of antique oak filing cabinets. Additional information is as follows:
Price $500 per filing cabinet
Variable production cost $170 per filing cabinet
Fixed production costs $8,000 per month
Variable selling and administration $20 per filing cabinet
Fixed selling and administration $3,000 per month
a)Estimate operating income for a month in which 100 filing cabinets are manufactured and 90 are sold, if the firm uses variable costing. Assume no beginning inventory. Use the proper variable costing income statement format.
b)Estimate operating income for a month in which 100 filing cabinets are manufactured and 90 are sold, if the firm uses absorption costing and actual costing. Assume no beginning inventory. Use the proper absorption costing income statement format.
c)What is the cost assigned to ending inventory under each of the above costing methods? Explain the differences between the two ending inventory valuations (do not perform a computation for this answer).
d)Reconcile the operating incomes between variable costing and absorption costing.
e)What additional information would be needed to calculate throughput costing operating income?
f)If the manager of Finish-It-Yourself Furniture Company is given a bonus based on income, which type of costing income statement would you recommend for evaluating manager performance? Justify your choice.