9 For its first month of operations, Better Than That Corp., a manufacturer, reports the following information: Direct Materials Direct Labor Variable Factory OH Fixed Factory OH Per unit: Per month: $17 $7 $4 $??? Units Produced during the month: 12,000 units Units Sold during the month: 10,000 units The company's per unit product cost using absorption costing was $35. What is total Fixed factory overhead for the month? a. $48,000 Ob. $110,000 C. $70,000 O d. $132,000 e. $84,000 QUESTION 10 Stripmining Co. manufactures and sells various types of bicycles, including touring bikes. Results for last year for the manufacture and sale of touring bikes are as follows: Sales $250,000 Expenses Variable manufacturing costs $140,000 Fixed Factory OH $80,000 Sales Commissions $15,000 Advertising (fixed) $25,000 $260,000 ($10,000) Net Operating Income/(Loss) The firm is considering whether to discontinue the manufacture and sale of touring bikes. All expenses other than fixed factory OH are avoidable if the product is dropped. None of the fixed manufacturing overhead is avoidable. Assume that dropping touring bikes will have no effect on sales or costs of other products. The annual financial advantage (disadvantage) for the company of discontinuing this product would be: a. ($90,000) b. ($70,000) C. None of the other choices are correct d. ($80,000) e. $10,000