2. (1 point) "Happy IE Students" is a fashionable clothing brand that only sells T-shirts. This company budgeted its activity for December 2020 from the following information: a Sales are budgeted at 100,000 units at a selling price of 30 each. o Merchandise inventory at December 15' 2020 was 62,000, and we expect a cost of ending inventory at December 31St 2020 at 42 ,000. o The estimated total cost of production is 800,000 for the month of December 2020. 0 Estimated selling and administrative expenses for December 2020 are 105,000. o Depreciation of the machines used in production for the month of December 2020 is projected at 20,0006. Calculate the company's projected operating income for December 2020. 3. (1.5 points) A company conducts variance analysis for direct labor cost. They nd the labor costs in the actual results, in the exible budget and in the static budget are 72,000 , 69,000 and 79,000 respectively. Explain the potential reasons for the variances (respond in a maximum of 10 lines, and use readable writing). 4. (1 point) Belford is a US corporation that manages stores offering interior design services, supplies and accessories to complete projects for countryside, mountain homes, and city gardens. Services and products are directed to 3 types of customers: private clients requiring consulting services and professional products, architects hired for private projects, and business contractors. Belford will present its new industrial plan to the financial community in a few months. One of the drivers supporting which business to expand is the protability by customer group. Belford collected the following data for 2019 for each customer type: Private ' Table 1 clients Architects Contractors Revenues $32,000,000 l $50,000,000 $65,000,000 Costs of Goods Sold (excluding indirect costs) $20,000,000 $30,000,000 $50,000,000 Number of nurchase orders laced 12,000 33,000 15,000 Belford also provided the following information for the indirect costs incurred in 2019: Table 2 Activity Description of activity Cost Amount Cost Driver Placing of orders for Ordering purchasing $6,000,000 Purchase orders Based on the information provided above, allocate 2019 indirect costs using ABC (whereas indirect costs are allocated across each customer group using the activity in Table 2) and calculate 2019 operating income for each of the 3 customer groups