Many traditional costing systems.

a. trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates
b. write off manufacturing overhead as an expense of the current period
c. combine widely varying elements of overhead into a single cost pool
d. use a host of different cost drivers (e. g., number of production setups, inspection hours, orders processed) to improve the accuracy of product costing
e. produce results far superior to those achieved with activity-based costing

Required: 1-a. the marketing manager argues that a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000. calculate the increase or decrease in net operating income. 1-b. should the advertising budget be increased ? yes no hintsreferencesebook & resources hint #1 check my work 8.value: 1.00 pointsrequired information 2-a. refer to the original data. management is considering using higher-quality components that would increase the variable expense by $2 per unit. the marketing manager believes that the higher-quality product would increase sales by 10% per month. calculate the change in total contribution margin. 2-b. should the higher-quality components be used? yes no