An entity makes a line of bathroom accessories. Because of a decline in sales, the company has 14151 machine hours of idle capacity available each year. This idle capacity could be used by the company to make, rather than buy, one of the components used in its production process. The entity needs 5996 units of this component each year. At present, the component is being purchased from an outside supplier at $8.40 per unit. Variable production cost for the component would be $4.76 per unit, and additional supervisory costs would need to be incurred. Already existing fixed costs, which would be allocated to this part, amount to $301838 per year. What would the annual cost of additional supervision have to be in order for Hadley to be economically indifferent to making or buying the component? Select one: O a. $21825 b. $23825 O c. $24825 O d. $22825 During the last year, an entity's total variable production costs were $11140, and its total fixed manufacturing overhead costs were $6728. The entity produced 5067 units during the year and sold 4588 units. There were no units in the beginning inventory. Which of the following statements is true? Select one: O a. The net income under absorption costing for the year will be $702 higher than net income under variable costing O b. The net income under absorption costing for the year will be $702 lower than net income under variable costing. O c. The net income under absorption costing for the year will be $636 lower than net income under variable costing. Od. The net income under absorption costing for the year will be $636 higher than net income under variable costing