Juestion 3: Bubblegum Inc. makes candy. On average, Bubblegum Inc, sells each piece of candy for variable costs per unit of $.10. Currently, Bubblegum Inc, plans to sell 1.500.000 pieces of candy this year. The tax rate for the area is 25% and Bubblegum Inc. plans to make $480,000 in Net Income. Bonnibel, one of the managers at Bubblegum Inc., has come up with a plan to increase sales for the year by 600.000 pieces of candy. In order to do this, Bubblegum Inc. would drop the sales price to $.80 and increase variable costs for each piece of candy to $.20. With this information please solve for: a. The fixed costs for Bubblegum Inc: b. Whether Bubblegum Inc. should implement Bonnibel's plan: c. Explain your answer to b: question 4: Marceline Co. makes made to order guitars. One of the ins Marceline co worked on during the month was Job Vamp, which used $1,200 in direct materials. $210 in direct labor costspaid at $15 an hour) and 125 machine hours. They use normal costing to help track costs for the guitar orders they fill and use machine hours as their allocation base. At the beginning of the month, Marceline Co. believes they will use 1,500 direct labor hours, 7,500 machine hours and have $ 17,700 in manufacturing overhead costs. At the end of the month, Marceline Co. finds they used 1,450 direct labor hours, 7,550 machine hours and had $17,610 in manufacturing overhead costs for all their jobs. With this information, please solve for the following: a. The budgeted manufacturing overhead allocation rate: b. Total cost applied to Job Vamp: c. Whether the manufacturing overhead was over- or under-applied for the month: d. How much was the manufacturing overhead over/under-applied by