Minstrel manufacturing uses a job order costing system. during one month, minstrel purchased $206,000 of raw materials on credit; issued materials to production of $203,000 of which $22,000 were indirect. minstrel incurred a factory payroll of $158,000, of which $32,000 was indirect labor. minstrel uses a predetermined overhead rate of 150% of direct labor cost. the total manufacturing costs added during the period are:

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine