Mendburg, Inc. is a consulting firm that offers optimal legal solutions. It allocates indirect costs using a single predetermined overhead allocation rate with direct labor hours as the allocation base. The estimated indirect costs for this year amount to $170,000. The company is expected to work 17,000 direct labor hours during the year. The direct labor rate is $200 per hour. Clients are billed at 130% of direct labor cost. Last month, Mendburg's consultants spent 180 hours on Curelli, Inc. Calculate the operating income from Curelli. O A. $9,000 O B. $36,000 O C. $189,000 OD. $36.190 Galley Company, a manufacturer of small kitchen appliances, had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Allocated Costs $74,000 $41,000 $14,000 $12,000 Allocation Base 2,100 hours 20,000 lines 24,000 accounts 1,000 letters The above activities are carried out at two of its regional offices. Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Northeast Office 120 hours 10,000 lines 1,400 accounts Midwest Office 300 hours 9,000 lines 650 accounts O A. $19.52 OB. $35.24 OC. $3.70 OD. $2.05 Titanic Roofing Company has estimated the following amounts for its next fiscal year: Total fixed costs Sale price per unit Variable cost per unit $832,500 $50 $25 If the company spends an additional $30,000 on advertising, sales volume would increase by 2,500 units. Before the change, the company's sales level exceeds the breakeven point. What effect will this decision have on the operating income of Titanic? A. Operating income will increase by $32,500. OB. Operating income will increase by $62,500. OC. Operating income will decrease by $32,500. OD. Operating income will increase by $125,000