Question 4-5 in a managerial accounting project by gatsby, i cannot figure it out

Assignment 4 What is the fixed cost per unit for 2019, taking into account any over- or under- Q-4-5. applied overhead? Q-4-6. Assume (for the point of illustration) that in 2020, Gatsby started and completed two jobs: #230 and #231. Details for each job are provided below: Designer Child Chair Jeans Line Line Total Job #230 Job #231 $15,000 $0 $15,000 Direct labor cost 100 300 Machine hours 400 Overhead applied: Total $0 Using direct labor cost $4,000 $4,000 Using machine hours $1,000 $3,000 $4,000 Difference $3,000 $3,000) Gatsby expects its overhead for 2020 will be $4,000 in total. Which of the following statements is not true? 1. The jeans line is over-costed if most of the overhead is related to machinery and direct labor cost is used as a driver. 2. The child chair line is over-costed if most of the overhead is related to machinery and machine hours is used as a driver. 3. If manufacturing overhead is primarily comprised of costs related to maintaining and depreciating equipment, then machine hours is an appropriate basis to use in applying overhead to product lines. 4. The company should consider two cost pools for overhead: one related to indirect labor using direct labor cost as a driver and the other related to machinery costs using machine hours as a driver. If manufacturing overhead is primarily comprised of costs related to supervising factory floor workers, then direct labor hours is an appropriate basis to use in applying overhead to product lines. Q-4-7. Which of the following best explains the difference in net operating income be- tween the variable costing method and the absorption costing method? (1. The amount of fixed manufacturing overhead per unit times the change in finished goods inventory. 2. The amount of total cost per unit times the increase in finished goods inventory. 3. The amount of variable manufacturing overhead per unit times the change in finished goods inventory. goods inventory. 4. The amount of total manufacturing cost per unit times the change in finished goods inventory. 5. The amount of fixed manufacturing overhead per unit times the ending finished Assignment 4 Questions