5. Answer the following questions using the information below gory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Machine maintenance Overhead Costs Cost driver Activity level Supervision of direct labor $320,000 Direct labor-hours 800,000 960,000 $200,000 Square feet of area 100,000 $120,000 Machine-hours Facility rent Total overhead costs The accounting records show the Mossman Job consumed the following resources: Cost driver Direct labor-hours Machine-hours Square feet of area Actual level 200 1,600 50 If Gregory Enterprises uses the three activity cost pools to allocate overhead costs, what are the activity-cost driver rates for supervision of direct labor, machine maintenance, and facility rent, respectively? A) $0.60 per dlh, $0.025 per mh, $0.80 per sq ft B) $1.25 per dlh, $0.25 per mh, $0.50 per sq ft C) $0.40 per dlh, $0.05 per mh, $0.20 per sq ft D) $0.40 per dlh, $0.125 per mh, $2 per sq ft Using the three cost pools to allocate overhead costs, what is the total amount of overhead costs to be allocated to the Mossman Job? A) $200 B) $380 C) $675 D) $170 6. If a company has a degree of operating leverage of 3.0 and sales increase by 25%, then: A) total variable costs will increase by 75% B) total variable costs will not change C) profit will increase by 30% D) profit will increase by 75%