During 2012, Alvarez Manufacturing expected Job No. 26 to cost $336,000 in overhead, $400,000 in direct materials, and $240,000 in direct labor. Alvarez used direct labor cost as the activity base. Actual production required $840,000 of overhead, $825,000 of direct materials, and $330,000 of direct labor. Upon completion of the job, the amount transferred to Finished Goods is Select one: a. $1,617,000. b. $1,491,000. c. $ 976,000. d. $1,206,000. e. not able to be determined from the provided information.

Wisconsin snowmobile corp. is considering a switch to level production. cost efficiencies would occur under level production, and after tax costs would decline by $36,000, but inventory would increase by $300,000. wisconsin snowmobile would have to finance the extra inventory at a cost of 13.5 percent.a. determine the extra cost or savings of switching over to level production. should the company go ahead and switch to level production? b how low would interest rates need to fall before level production would be feasible?