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P&A Inc manufactures console tables and uses an activity based costing system to allocate all manufacturing conversion costs. Each console table $260 in direct materials and requires 5 hours of machine time to produce. The compary incurs no direct labor costs. Additional information follows Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $1.00 per part Machining Machine hours $3.90 per machine hour Assembling Number of parts $1.00 per part Packaging Number of finished units $4.00 per finished unit Which of the following is the total manufacturing cost per console table? OA. 563.50 O B. $319,50 C. 57800 OD. $323.50 costing system to allocate all manufacturing conversion costs. Each console table consists of 20 separate parts totaling oduce. The compary incurs no direct labor costs. Additional information follows: Cost Allocation Rate $1.00 per part $3.90 per machine hour $1.00 per part $4.00 per finished unit table? Rainbow Brothers Inc. has two product lines. Rain coats and Snow boots. The following is data on its Income statement for the most recent year Total Rain Coats Snow Boots Sales revenue $530,000 $390.000 S140,000 Variable expenses 385,000 265,000 120,000 Contribution margin 145,000 125,000 20.000 Fixed expenses 77.000 38,500 38,500 Operating income (loss) $68,000 $86 500 5(18,500) If 526,000 of fixed costs will be eliminated by discontinuing the Snow Boots line how will operating income be affected? O A. Increase 577,000 B. Increase $6.000 OC. Decrease $47,500 OD. Increase $145.000