Ajob order cost system uses a predetermined factory overhead rate based on expected volume and expected fixed costs. at the end of the year, underapplied overhead might be explained by which of the following situations?
actual volume actual fixed costs
a. greater than expected
b. greater than expected less than expected
c. less than expected greater than expected
d. less than expected less than expected

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?