10 Itranscript Data concerning Pellegren Corporation's single product appear below: 01:14:05 Selling price Variable expenses Contribution margin Percent of Per Unit Sales $ 200 100% 40 20% $ 160 80% Fixed expenses are $531,000 per month. The company is currently selling 4,000 units per month. The marketing manager would like to cut the selling price by $14 and increase the advertising budget by $35,000 per month. The marketing manager predicts that these two changes would increase monthly sales volume by 500 units. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice decrease of $18,000 decrease of $38,000 increase of $38,000 O increase of $58,000 11 01:13:57 Itranscript The journal entry to record applying overhead during the production process is: Multiple Choice Work in Process Debit XXX Credit Manufacturing Overhead XXX Finished Goods Manufacturing Overhead Manufacturing Overhead Work in Process Manufacturing Overhead Finished Goods Debit XXX Credit XXX Debit Credit XXX XXX Debit Credit XXX XXX 13 Itranscript The $10,000 balance in the T-account below represents overapplied manufacturing overhead for the period. Manufacturing Overhead 01:13:50 Debit (2) 4,000 (7) Credit 180,000 (3) 30,000 (4) 80,000 (5) 40,000 (6) 36,000 190,000 180,000 Balance 10,000 True or False True False