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Mighty Sole Fire Alarm is currently buying 60,000 motherboards from Motherboard, Inc, at a price of 564 per board, Mighty Sale is considering making its

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Mighty Sole Fire Alarm is currently buying 60,000 motherboards from Motherboard, Inc, at a price of 564 per board, Mighty Sale is considering making its own boards. The costs to make the board are as follows direct materials, $29 per unitdirect labor, $8 per unit, and variable factory overhead, $15 per unit. Fixed costs for the plant would increase by $79.000, which option should be selected and why? Oa huy, 5640, increase in proti Ob ml, S720,0 cm in profits Oc make, 640,0 increase in proti Od by 79.000 increase in profils Thomlin Company forecasts that total overhead for the current year will be $11,961,000 with 162,000 total machine hours. Year to date, the actual overhead is $7,937,000 and the actual machine hours are 88,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. Oa. $136 per machine hour Ob. $90 per machine hour Oc. $49 per machine hour Od 874 per machine hour The following production data were taken from the records of the Finishing Department for June: Inventory in process, June 1 (39% completed) 6,000 units Completed units during June 62,900 units Ending Inventory (61% complete) 3,200 units The number of materials equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process, is Oa. 66,100 units Ob. 56,900 units Oc. 60,100 units Od. 3,200 units

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