Beck Company introduced a new product three years ago. Beck uses standard costing to account for the costs. The predetermined fixed overhead rate is based on normal utilization of 25,000 units per year. There were no price, spending, or efficiency variances. Production volume variances are closed to cost of goods sold. Relevant information for the Years 1, 2, and 3 follows: Budgeted units Units produced Units sold Selling price Year 1 Year 2 Year 3 25,000 25,000 25,000 25,000 32,000 21,000 24,800 25,000 27,000 $100 per unit 17 per unit 12 per unit 13 per unit Direct materials Direct labor Variable manufacturing overhead Variable marketing & administrative Fixed manufacturing overhead Fixed marketing & administrative REQUIRED: a. Answer the following questions: 8 per unit $600,000 $250,000 1. What is the fixed overhead rate (FOHR) per unit for each year? 2. What is the inventoriable cost per unit under absorption costing for each year? 3. What is the inventoriable cost per unit under variable costing for each year? 4. 5. Which method (absorption or variable) will have the higher operating income for Year 1? Why? Which method (absorption or variable) will have the higher operating income for Year 2? Why? Which method (absorption or variable) will have the higher operating income for Year 3? Why? Compute the volume variance for each year.