King Tooling has produced and sold the following number of units of their only product during their first 2 years in business: Produced Sold Year ended December 31, Year 1 50,000 40,000 Year ended December 31, Year 2 50,000 55,000 Production costs per unit have not changed over the 2-year period. Under variable costing, what is the amount of cost of sales relative to the cost of sales shown on the GAAP income statement of the company? A. Year 1 Year 2 "Lower Higher Year 1 B. Lower C. Year 1 Higher Year 1 Lower Year 2 Lower Year 2 Higher Year 2 Higher OD Consider the following information attributed to the material management department Budgeted usage of materials - handling labor-hours 3,100 Budgeted cost pools: Fixed costs $127,100 Variable costs $96,100 (3,100 hours x $31 per hour) The company uses the single-rate method to allocate support costs to the Machining and Assembly Departments. Assuming that the actual hours tracked in the Machining and Assembly department are 490 for the month, what would be the allocation rate and how much cost would be allocated to the Machining and Assembly Department for the operations of the month? (Round final answers to the nearest dollar.) A. $31 an hour for a total of $15,190 B. $31 an hour for a total of $35,280 c. $72 an hour for a total of $35,280 D. $456 an hour for a total of $72 LLLLLL