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Sudoku Products made and sold widgets and gadgets in 2022. price, cost, and production information is summarized below. All direct labor and direct material costs are variable. Sudoku began the year with zero inventory. Quantity produced Batch size Direct material per unit Direct labor per unit Sales price per unit Question 1. Widgets 6,000 $20 $8 $150 Gadgets 2,000 100 $60 $24 $300 In addition to these costs, Sudoku incurred manufacturing overhead of $480,000, some of which is fixed and some of which is variable. Sudoku uses a full absorption costing system in which manufacturing overhead is allocated to products on the basis of direct labor dollars. How much overhead is allocated to each widget? Question 2. Sudoku is considering the adoption of activity-based costing (ABC) to allocate manufacturing overhead to products. An ABC analysis finds that the fixed overhead of $320,000 provides space for the workers and should be allocated on the basis of direct labor dollars. The variable overhead of $160,000 consists Of $60,000 Of material handling costs that are allocated on the basis Of direct material dollars and $100,000 Of batch costs that are allocated to products using the number Of production batches. What will happen to the unit manufacturing cost Of a widget if Sudoku adopts activity-based costing? The unit cost Of widgets will increase. The unit cost of widgets will decrease. The unit cost of widgets will not change. Question 3. What is the contribution margin of a batch of 300 widgets? Question 4. Suppose that Sudoku made an additional 500 gadgets during the last quarter Of 2022, which it did not sell. What was the effect Of gadget overproduction on Sudoku's 2022 accounting income? Income went down because of an unfavorable volume variance. Income went up because of a favorable volume variance. Income did not change because all additional manufacturing costs went on the balance sheet.