Under absorption costing, a company had the following per unit costs when 14,000 units were produced. 1. Compute total product cost per unit under absorption costing if instead 20,000 units are produced. Total fixed overhead remains at $70,000. 2. If units produced is greater than units sold, will cost of goods sold under absorption costing increase or decrease? Navigation: 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect. fx Accessibility tab summary: Information about a company A C Under absorption costing, a company had the following per unit costs when 14,000 units were produced. Direct materials Direct labor Variable overhead Fixed overhead ($70,000/14,000 units) Total product cost per unit IMPORTANT: Answer grading policy For an answer to be graded as correct, you must use an Excel formula: 1. Begin each formula with an = sign. 2. Reference cells, instead of entering values. Example: =B3+C3 \begin{tabular}{|r|r|r|} \hline Fixed overhead & OriginalProduction & Increasedproduction \\ \hline$70,000 & 14,000 & 20,000 \end{tabular} Required: 1. Compute total product cost per unit under absorption costing if instead 20,000 units are produced. Total fixed overhead remains at $70,000. \begin{tabular}{|l|l|} \hline Absorption costing & Per unit \\ \hline & \\ \hline & \\ \hline & \\ \hline Product cost per unit & \\ \hline \end{tabular} 2. If units produced is greater than units sold, will cost of goods sold under absorption costing increase or decrease? A B c D E G H I Under absorption costing, a company had the following per unit costs when 14,000 units were produced. Direct materials Direct labor Variable overhead Fixed overhead ($70,000/14,000 units ) Total product cost per unit \begin{tabular}{|r|c|c|} \hline Fixed overhead & OriginalProduction & Increasedproduction \\ \hline$70,000 & 14,000 & 20,000 \\ \hline \end{tabular} Required: 1. Compute total product cost per unit under absorption costing if instead 20,000 units are produced. Total fixed overhead remains at $70,000. \begin{tabular}{|l|l|} \hline Absorption costing & Per unit \\ \hline & \\ \hline & \\ \hline & \\ \hline Product cost per unit & \\ \hline \end{tabular} 2. If units produced is greater than units sold, will cost of goods sold under absorption costing increase or decrease