Use the Following Information for Questions

Multiple Choice

Use the following information for questions
Sprinkle Co. sells its product for $60 per unit. During 2019, it produced 60,000 units and sold 50,000 units (there was no beginning inventory) . Costs per unit are: direct materials $15, direct labor $9, and variable overhead $3. Fixed costs are: $720,000 manufacturing overhead, and $90,000 selling and administrative expenses.
-Under absorption costing, what amount of fixed overhead is deferred to a future period?

A) $30,000
B) $120,000
C) $150,000
D) $720,000