Tim Smith is​ concerned: He notes that despite an increase in sales over 2019​, 2020 operating income has actually declined under absorption costing. Explain how this occurred. Under absorption​ costing, operating income is a function of production. During 2020​, Alderman experienced a large decrease in inventory levels as a result of decreased production. The end result was that much of 2020's beginning inventory passed through cost of goods sold in 2020.

howard, fine, & howard is an advertising agency. the firm uses an activity-based costing system to allocate overhead costs to its services. information about the firm's activity cost pool rates follows: stooge company was a client of howard, fine, & howard. recently, 7 administrative assistant hours, 3 new ad campaigns, and 8 meeting hours were incurred for the stooge company account. using the activity-based costing system, how much overhead cost would be allocated to the stooge company account?