3. 5 Points) Aaker Corporation which has only one product has provide the following data for the most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fibed costs: Fixed manufacturing overhead Fixed selling and administrative $170, 100 $24,000 Given that production exceeds sales how much more will the net operating profit be under absorption costing as opposed to variable costing? ANS:$8,100 Bonus Question (5 Points) The ABC Company produces a part used in the manufacturing on one of its products. The unit product cost is $26, computed as follows: Direct materiais Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost An outside supplier has offered to provide the annual requirement of 5,000 of the parts for $21 each. The company estimates that 75% of the fixed manufacturing overhead cost can be eliminated if the outside supplier provides the parts. Based upon the date provided should the ABC Company accept the offer? What is the cost savings or cost disadvantage of accepting the offer? Ans: Accept or Reject (circle your choice) Cost Savings or Disadvantage: 15,000 02 I rate per 10 Direct material Direct labor 7 units 5ooo 5000 5000 5000 1 Cost 50,000 35600 5000 40,000 130,000 Fixed Mo total cost of producing 5000 parts