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. Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply...

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. Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,000 actual direct labor-hours and incurred $346,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 55,000 direct labor-hours during the year and incur $30,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was: A. Overapplied by $16,000 B. Underapplied by $16,000 C. Overapplied by $4,000 D. Underapplied by $4,000 E. None of the above 2. Miller Company's last month contribution format income statement is shown below: Total 450,000 $180,000 $270,000 $9 $220,000 $50,000 per unit Sales Variable Expense Contribution Margin Fixed Expense Net operating Income The president believes that the company could reduce variable costs by $2.00 per unit. However, fixed costs would increase by $42,000 each month. If the president is right, what will be the effect on the company's monthly net operating income or loss? (Choose the closets answer.) A. A decrease of $18,000 B. An increase of $68,000 C. An increase of $18,000 D. A decrease of $68,000 E. An increase of $102,000

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