Sells its product for $60 per unit. During 2015, it produced 60,000 units and sold 50,000 units (there was no beginning inventory or BI- 0). Costs per unit arc: direct materials (DM) SI5, direct labor (DL) $9, and variable overhead (VOH) $3- Fixed costs are: $720,000 (FOB) manufacturing overhead, and $90,000 (S&A) selling and administrative expenses. Under absorption costing (ABS). what amount of fixed overhead (FOH) is deferred to a future period? $30,000 $1 20.000 $150,000 $720,000 Net income under absorption costing is higher than net income under variable costing when units produced (P) exceed units sold (S). when units produced (P) equal units sold (S). when units produced (P) are less than units sold (S). regardless of the relationship between units produced (P) and units sold (S). It costs Gamer Company SI 2 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 2,000 scales at SI5 each. Gamer would incur special shipping costs of SI per scale if the order were accepted. Gamer has sufficient unused (excess) capacity to produce the 2,000 scales. If the special order b accepted, what will be the effect on net income? $4,000 increase $4,000 decrease $6,000 decrease $30,000 increase Baden Company manufactures a product with a unit variable cost of $50 and a unit sales price of S88. Fixed manufacturing costs were $240,000 when 10,000 units were produced and sold. The Company has a one-time opportunity to sell an additional 1,000 units at $70 each in a foreign market which would not affect its present sales. If the Company has sufficient (excess) capacity to produce the additional units, acceptance of the special order would affect net income as follows: Income would decrease by $4,000. Income would increase by $4,000. Income would increase by $70,000. Income would increase by $20,000