Question 3.

Q#3 (06 marks) HASF Corporation began operations at the beginning of the current year, one of the year company product a compressor sells for 370 per unit's information related to the current year activities follows Variable cost per unit Direct material 40 Direct labor 74 Manufacturing overhead 96 Annual fixed cost Manufacturing cost 1.200,000 Selling and administrative 1.720,000 Sales and production Sales in units 20,000 Production 24,000 Required Cost of the December 31 finished goods inventory Net income for the current year Dec 31 if next year production decrease to 22,500 units and general cost behavior patterns do not change what is the likely effect on The direct labor cost of 74 per units? why? The fixed manufacturing overhead of 1,200,000? why? The fixed selling and administrative cost of1,7200,000? why? Per unit cost production why