1. 2.

Sheffield Corp. sells its product for $60 per unit. During 2019, it produced 78000 units and sold 65000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $9, and variable overhead $3. Fixed costs are: $936000 manufacturing overhead, and $117000 selling and administrative expenses. Under absorption costing, what amount of fixed overhead is deferred to a future period? O $195000. O $156000. O $39000. $936000. It costs Crane Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign wholesaler offers to purchase 3000 units at $21 each. Crane would incur special shipping costs of $2 per unit if the order were accepted. Crane has sufficient unused capacity to produce the 3000 units. If the special order is accepted, what will be the effect on net income? O $3000 increase O $9000 increase O $54000 increase o $3000 decrease