Question 6 3 pts Assume actual overhead is less than overhead applied for the period. Then, before the closing entries are made at the end of the period: net income will be overstated and finished goods inventory will be overstated net income will be overstated and finished goods inventory will be understated net income will be understated and finished goods inventory will be overstated net income will be understated and finished goods inventory will be understated Question 7 3 pts Wemakit Mfg. makes a single product that it sells for $80 each. Variable costs per unit equals $32. The fixed cost per unit is $36 at the sales level of 2000 units. Management believes that a 10% reduction in selling price will result in a 20% increase in sales. If this proposed reduction in selling price is implemented, operating income will: they decrease by $8000 increase by $8000 decrease by $16000 increase by $16000 not change