Which of the following would be the most appropriate cost driver to allocate costs associated with a company's engineering department (engineers develop new products)? A. Advertising costs to increase the sales of new products B. Number of direct labor hours used in manufacturing C. Number of new product designs D. Number of production setups E. Both A and C Use the following information to answer questions 11-13: Alpha Company makes products A and B. Its contribution margin statement is as follows: Alpha allocates its fixed costs (capacity costs) based on direct labor dollars. Compute the allocated fixed costs for product A: A. $2.00 B. $30,000 C. $50,000 D. $60,000 E. $110,000 Alpha is planning to change the product mix to 200 units of A and 300 units of B. How much will Alpha fixed costs change in the short term? A. decrease by $90,000 B. decrease by $80,000 C. decrease by $50,000 D. decrease by $25,000 E. no change Alpha is planning to change the product mix to 200 units of A and 300 units of B. How much will Alpha's fixed costs change in the long term? A. decrease by $120,000 B. decrease by $90,000 C. decrease by $50,000 D. decrease by $25,000 E. no change Beta Company has the following data for product X: sales revenue $10,000, variable costs $8,000, allocated fixed costs $4,000. Assume that Beta cannot increase the price of product X or improve the production process to increase profitability. What should Beta do about product X? A. Discontinue (kill) the product in the short term but keep it in the long term B. Keep the product in the short term but discontinue it in the long term C. Keep the product both in the short term and in the long term D. Discontinue the product both in the short term and in the long term E. All of the above