7 pts Question 16 FilmBuff Company manufactures VCRs. The following cost information for the manufacture of one VCR is the following: Direct Materials: $60 Direct Labor: $90 Variable Manufacturing Overhead: $60 . Fixed Manufacturing Overhead: $20 Total cost per unit: $230 "The $20 fixed overhead amount reflects the amount of indirect costs allocated to each unit. However, as indicated, the total of these indirect costs is fixed. FilmBuff has received a special order for 1.000 VCRs at a price of $192 per unit. By how much will overall company net income change if the order is accepted? O Company net income will DECREASE by $42,000 O Company net income will INCREASE by $42,000 Company net income will INCREASE by $22,000 Company het income will DECREASE by $18,000 Norman's Furniture Company only manufactures custom furniture and uses a job order costing system to accumulate costs. Actual Direct Materials and Direct Labor costs are accumulated for each job, but a predetermined overhead rate is used to apply Manufacturing Overhead costs to individual jobs Manufacturing Overhead is applied on the basis of direct labor hours. In computing a predetermined overhead rate, the company controller estimated that Manufacturing Overhead costs for the year would be $308,000 and direct labor hours would total 26,000 hours. The following summary information is available for the year: Note: This summary information represents cost data related to hundreds of different job orders started or completed during the year. Raw materials purchased: $295,000 Raw materials used as direct materials in production: $241,000 Wages paid to the furniture craftsmen: $425,000 (for 26,000 hours of labor performed) Wages paid to the factory maintenance works: $56,000 Depreciation on machinery and equipment: $81.000 Rent and utilities for the factory building: $117.000 Raw materials used as indirect materials: $15,000 Manufacturing Overhead was applied to Work-in-process Inventory using the predetermined overhead rate Work-in-process Inventory costing $846,000 was completed and transferred to Finished Goods Inventory Goods costing $747,000 were sold . AFTER the appropriate closing entry of any over-or under-applied Manufacturing Overhead amount, what is the final amount of Cost of Goods Sold? O $723,000 O $771,000 $708,000 $786,000 Fachgehead 1.80.000 40.000 - 54 Selling and admitere Fored 110.000 470.000 units per unit Wwbert has indicated that the company is not interested in signing contact for whan 411.350 broom. Totalted costs will not change regardess of whether the Watertoeris accepted By how much will EastWest Company's overall et income change it the Wobert onder accepted Bastwest Coran et cone w DECREASEDY 51.000.000 Ontwist Company net income will INCREASED $1.000.000 EastWest Company et income will INCREASE by 5411250 East West Company income will DECREASE by 5411250