Lusk company produces and sells 16,100 units of product a each month. the selling price of product a is $31 per unit, and variable expenses are $25 per unit. a study has been made concerning whether product a should be discontinued. the study shows that $71,000 of the $111,000 in fixed expenses charged to product a would continue even if the product was discontinued. these data indicate that if product a is discontinued, the company's overall net operating income would:

decrease by $54,400 per month
increase by $14,400 per month
decrease by $56,600 per month
increase by $54,400 per month

Moody corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. at the beginning of the year, the company made the following estimates: machine-hours required to support estimated production 100,000 fixed manufacturing overhead cost $ 650,000 variable manufacturing overhead cost per machine-hour $ 3.00 required: 1. compute the plantwide predetermined overhead rate. 2. during the year, job 400 was started and completed. the following information was available with respect to this job: direct materials $ 450 direct labor cost $ 210 machine-hours used 40