You make component X in-house at a cost of $16 per unit, which consists of $2 direct labor per unit, $7 direct materials per unit, $6 fixed overhead per unit, and $1 variable overhead per unit. You need 1,000 units of X per month. An outside supplier has offered to sell component X to you at $12 per unit. If you outsource the production of X to the supplier, how much will your profit change in the short term? o increase by $4.000 o decrease by $4,000 o increase by $2,000 increase by $12.000 O decrease by $2,000 The product safety department of Toyota tests new vehicle models for safety before they go into mass production. Which of the following would be the most appropriate cost driver for this department? O number of production setups used in manufacturing O number of direct labor hours used in manufacturing O number of new vehicle designs O number of machine hours used in manufacturing O advertising costs incurred to increase the sales of new vehicles Actual Budgeted 110 units Sales volume 100 units Sales price $55 per unit Unit VC $50 per unit $30 per unit $10 per hour $33 per unit $12 per hour Input price for DL Input quantity per unit for DL 1.5 hours per unit 2 hours per unit Compute sales volume variance $200 unfavorable 10 units unfavorable O $200 favorable O $500 favorable O $500 unfavorable Actual Budgeted 110 units Sales volume 100 units Sales price $50 per unit $55 per unit $33 per unit Unit VC $30 per unit $10 per hour $12 per hour Input price for DL Input quantity per unit for DL 1.5 hours per unit 2 hours per unit Compute sales price variance $500 unfavorable $550 favorable $550 unfavorable $5 favorable $500 favorable Budgeted Actual Sales volume 100 units 110 units Sales price $55 per unit $33 per unit Unit VC $50 per unit $30 per unit $10 per hour 1.5 hours per unit $12 per hour Input price for DL Input quantity per unit for DL 2 hours per unit Compute input efficiency variance for DL O $100 unfavorable O 0.5 hours unfavorable $550 favorable o $100 favorable $550 unfavorable