The Cole Company uses an absorption-costing system based on standard costs. Variable manufacturing cost consists of direct material cost of $3.00 per unit and other variable manufacturing costs of $1.60 per unit. The standard production rate is 10 units per machine-hour. Total budgeted and actual fixed manufacturing overhead costs are $480,000. Fixed manufacturing overhead is allocated at $8 per machine-hour based on fixed manufacturing costs of $480,00060,000 machine-hours, which is the level Cole uses as its denominator level. The seling price is $11 per unit. Variable operating (nonmanufacturing) cost, which is driven by units sold, is $1 per unit Fixed operating (nonmanufacturing) costs are $55,000. Beginning inventory in 2017 is 40,000 units; ending inventory is 45,000 units Sales in 2017 are 535,000 units The same standard unit costs persisted throughout 2016 and 2017. For simplicity, assume that there are no price, spending, or efficdency variances Read the requirements 0 15,000,00a5,00.005,000 Machine-hours Click to enlarge graph Requirement 5. Critics have claimed that a widely used accounting system has led to undesirable buildups of inventory levels. (a) Is variable costing or absorption costing more likely to lead to such buildups? Why? (b) What can be done to counteract undesirable inventory buildups? a) Is variable costing or absorption costing more likely to lead to such buildups? Why? enables managers to indnted in her curen priod costing is more likely to lead to buildups of inventory by building up inventory which (b) Select three things that can be done to counteract undesirable inventory buildups Click the graph, choose a tool in the palette and tollow the nstructions to create your graph Save for Later