nomework. Module 2: Assignment #2-Chapter 4 Score: 0 of 1 pt E4-24 (similar to) Save 1 of 14 (0 complete) Score: 0%, 0 of 14 pt Question Help Falcon Flange Com any manufacture a variety of special fianges for numerous customers. Annual capacity-related manufacturing overhead costs are S4 000 000 and the practical capacity level of machine hours is 180.000. The company uses planned machine hours as the cost driver in delermining the plantwide cost driver rate Until last year, the company used approximately 80,000 machine hours per year. Last year, competition increased and demand for the company's fanges fel. In the ace of continuing competition, the company estimates that it will use 2.500 machine hours n the coming year. The company sets its pnees at 140% of p per unit. Requirements (a) What is likely to happen if demand decreases further and Falcon Flange continues to recompute its oost driver rate using the same approach? (b) Advise the company on choosing a cost driver quantity for computing cost driver rates and explain why you advocate your choice of quantity. at a Requirement (a) What is likely to happen if demand decreases further and Falcon Flange consnues to recompute its oost driver rate using the same approach Using the company's approach, the cost driver rate before the decrease in demand was slil per machine hour. With the drop in demand, the cost driver rate wil be s per machine hou Enter your answerin the edit fields and then click Check Answer 2