6. Cornell Company produces toys. The following information is available: Selling price per doll Variable costs per doll Current annual sales Current fixed costs 26.40 $12.00 80,000 units $360,000 The sales manager projects that next year a 10% reduction in selling price combined with an ncrease of S 50,000 in advertising spending would result in an increase of 50% in unit sales. Compute operating income for next year: a. $1,411,200 b. Si,001,200 . $792,000 d. $209,200 e. None of above Beaver Company used a predetermined overhead rate last year of S2 per direct labor-hour, based on an estimate of 25,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were: Actual manufacturing overhead cost incurred Actual direct labor-hours worked The underapplied or overapplied overhead last year was: A. $1,000 underapplied 7. $47,000 B. $1,000 overapplied C. $3,000 overapplied D. $2,000 underapplied E. None of above. 8. Fannie Inc, manufactures X-type equipment. During October the company incurred the following of X-type equipment. All units were completed and the company sold 63 costs to produce 100 unit unit of the X-typ estimated rate of $20 per direct labor to cost of goods sold at the end of month. The following information is available: pe. Manufacturing Overhead is applied on the basis of direct-labor hours at an r month. The following information iplied nueftiead directly closed Direct material costs: $8,800 Direct labor: 450 hours@ $12 per hour Actual manufacturing overhead: $8,500 Determine the amount of cost of goods sold on company's income statements for the mo A. $23,200 B. $15,080 C. $16,080 D. $14,580 nth. E. $14,755 9. The following information relates to the break-even point at Roddam Corporation: Sales dollars Total fixed expenses $40,000 $10,000 If Roddam wants to generate net operating income of $4,000, what will its sales dollars have to a. $44,000 b. $45,000 c. $56,000 d. $64,000 e. None of the above