1. The following information pertains to Brian Stone Corporation: Beginning fixed manufacturing overhead in inventory $45,750 Ending fixed manufacturing overhead in inventory 52,500 Beginning variable manufacturing overhead in inventory $30,000 Ending variable manufacturing overhead in inventory 14,250 Fixed selling and administrative costs Units produced Units sold $724,000 5,000 units 4,800 units a. What is the difference between operating incomes under absorption costing and variable costing? $750 b. $7,500 $14,000 d. $15,750 $30,750 c. e. Answer the following question(s) using the information below. Schmidt Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows: Direct materials $45,000 Direct labour 105,000 Variable factory overhead 30,000 Fixed factory overhead 70,000 Total costs $250,000 of the fixed factory overhead costs, $30,000 is avoidable. 2. Phil Company has offered to sell 10,000 units of the same part to Schmidt Corporation for $18 per unit. Assuming there is no other use for the facilities, Schmidt should a. make the part, as this would save $3 per unit. b. buy the part, as this would save $3 per unit. make the part, as this would save $4 per unit. d. make the part, as this would save $2 per unit. buy the part, as this would save $4 per unit. C. e. a. 3. Assuming no other use of their facilities, the highest price that Schmidt should be willing to pay for 10,000 units of the part is $210,000 b. $160,000. $150,000 d. $220,000. $140,000 C. e