Gloom Manufacturing produces designer handbags and has the capacity to produce $50,000$Elemental Designs employs $10$ full$-$time employees and $10$ trainees. Each full$-$time employee is

salaried at $$85,000,$ whereas trainee salaries are just $$28,000.$ Overhead costs are applied on a

professional labor$-$hour basis that includes a mixture of both employee and trainee hours. When a

normal costing system is used, jobs using proportionately more full$-$time employees than trainees

will likely

be billed accurately for actual resources used

result in an underallocation of direct costs

be overbilled for actual resources used

be underbilled for actual resources used

handbags per year. Currently, Gloom produces $40,000$ handbags and is thinking about increasing

production to $45,000$ units next year. What is the most likely behavior of total manufacturing costs

and unit manufacturing costs given this change?

Total manufacturing costs will increase and unit manufacturing costs will stay the same

Total manufacturing costs will stay the same and unit manufacturing costs will stay the same

Total manufacturing costs will increase and unit manufacturing costs will decrease

Total manufacturing costs will increase and unit manufacturing costs will also increase