Question 1 (2 points) Saved Crusher Co produces 4,500 parts on average per year. These parts are used as part of the assembly of one of its core products. The per unit cost of the part is as follows: Variable Manufacturing Cost Fixed Manufacturing Cost Unit Product Cost 18 2 27 The part can be purchase from an outside supplier for $22 per unit. If the part is purchased from the outside supplier, half of the fixed manufacturing costs can be eliminated. What is the annual impact on the company's net operating income of buying the part from the outside supplier? Positive numbers indicate an increase in income, negative represent a decrease. 2250 -58500 -38250 22500 Question 2 (2 points) Crane Company uses predetermined overhead rates based on direct labour hours to apply manufacturing overhead. The company estimated manufacturing overhead would be $250,000 and direct labour hours would be 20,000. The actual figures for the year were $206,000 for manufacturing overhead and 15,000 direct labour hours. Manufacturing overhead will be: Overapplied 68,667 Overapplied by 18,500 Underapplied by 68,667 Underapplied by 18,500