Neef Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 84 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 12 Direct labor $ 5 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 432,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 61,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced during the year 12,000 9,000 Units sold during the year 9,000 10,000 Units in ending inventory 3,000 2,000

Which of the following statements is true for Year 2?

Multiple Choice

The amount of fixed manufacturing overhead released from inventories is $12,000

The amount of fixed manufacturing overhead released from inventories is $654,000

The amount of fixed manufacturing overhead deferred in inventories is $12,000

The amount of fixed manufacturing overhead deferred in inventories is $654,000