Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below. Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $620,000 $255,000 $236.000 $184,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $193,500 of the fixed manufacturing expenses and $108.500 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued. Required: a. According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.) b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped? a. b. Net operating income (loss) Financial advantage (disadvantage) The product dropped Lupo Corporationes a job order costing system with angeplantidepre following data m ned overhead are based on machine hours. The company based its predetermined overhead rate for the current year on the Total machine-hours Total fixed manufacturing overhead coat Variable manufacturing overhead per machine. 31,00 $159.000 2.00 Recently Job T607 was completed with the following characteristics Number of units in the Total machine-hours Direct materials Direct labor cost $1,320 If the company marks up its unit product costs by 40% then the seling M e Choice O $2760 O s27726 0 200.00 O $300.00 Irving Corporation makes a product with the following standards for direct labor and variable overhead: Standard Price Or Standard Cost Per Standard Ouantity Or Hours 0.2 hours 0.2 hours Direct labor Variable overhead $24.00 per hour $6.00 per hour 54.80 $1.20 o direct labor. hours to produce this outout. The actual variable overhead cost In November the company's budgeted production was 6,300 units, but the actual production was 6,100 units. The company used t was 58,568. The company applies viable overhead on the basis of direct labor hours The variable overhead re variance for November is 0 0 0 0