18. During September. 40,000 lts The standard quantity ot ateria pounds atastandard cost o1 56.05 Eavorable materlal usage varLatce ot 30,o actual quantity of materials used mst a. 41,250 pounds b. 38,750 pounds c. 155,000 pounds d. 165,000 pounds 19. Mississippi Industries manufactures a produet with following costs per unit at the expected productlon ot units per month: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead The company has the capacity to produce 60,000 units. The product regularly sells for $45. A wholesaler has offezed to pay 540ech for 2,000 units. If the special operating income would be a order is accepted, the effect on Mississippi's a. $34,000 increase b. $24,000 increase c. $12,000 decrease d. $10,000 decrease PART 1 20. Galaxy Industries manufactures 15,000 components per year. The manufacturing cost of the components was determined to be as $150,000 240, 000 90,000 follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Assume Galaxy Industries could avoid 340,000 of tixed manufacturing overhead if it purchases the component from an outside supplier. An outside supplier has offered to sell the component for $34. If Galaxy purchases the component from the supplier instead of manufacturing it, the effect on income would bea Total