The Hondasaki Motorcycle Company has a normal two-stage absorption job-order costing system. They close over- or under-applied overhead directly into Cost of Sales, and use expected production as their activity base. Assume that their projections for total fixed costs and variable costs per unit are accurate. For the following change, taken independently and assuming nothing else changes, choose thebestanswer.

Taking on an additional job that is sold before the end of the period will:

Impossible to predict without additional information

Increase adjusted cost of salesby more than the additional resulting variable costs

Increase adjusted cost of salesby less than the additional resulting variable costs

Increase adjusted cost of salesby just as much as the additional resulting variable costs