A) The actual manufacturing overhead incurred at Fraze Corporation during November was $79,000, while the manufacturing overhead applied to Work in Process was $65,000. The Corporation's Cost of Goods Sold was $385,000 prior to closing out its Manufacturing Overhead account. The Corporation closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true?

a. Manufacturing overhead for the month was under-applied by $14,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $399,000b.

b. Manufacturing overhead for the month was overapplied by $14,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $371,000

c. Manufacturing overhead for the month was over-applied by $14,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $399,000

d. Manufacturing overhead for the month was under-applied by $14,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $371,000

B) Data concerning Massing Corporation's single product appear below:

The company is currently selling 9,000 units per month. Fixed expenses are $837,000 per month. The marketing manager believes that a $16,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
a. Increase of $1,250
b. Decrease of $16,000
c. Decrease of $1,250
d. Increase of $17,250
C) Ramon Corporation makes 18,000 units of part E44 each year. This part is used in one of the company's products. The company's Accounting Department reports the following costs of producing the part at this level of activity
: .....................................................Per unit
Direct materials.................................$2.20
Direct labor......................................$5.40
Variable manufacturing overhead............$8.00
Supervisor's salary...............................$7.30
Depreciation of special equipment............$6.60
Allocated general overhead....................$1.80
An outside supplier has offered to make and sell the part to the company for $23.30 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $5,000 of these allocated general overhead costs would be avoided. In addition, the space used to produce part E44 would be used to make more of one of the company's other products, generating an additional segment margin of $21,000 per year for that product.
What would be the impact on the company's overall net operating income of buying part E44 from the outside supplier?
a. Net operating income would increase by $21,000 per year.
b. Net operating income would increase by $18,800 per year.
c. Net operating income would decrease by $123,000 per year.
d. Net operating income would decrease by $165,000 per year.

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Per Unit Percent of Sales Selling price... Variable expenses |Contribution margin.. $230 115 $115 100% 50% 50%