(Answered) Problem - inventory valuation under variable costinglane

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Problem - Inventory Valuation under Variable Costing

Lane Company produced 50,000 units during its first year of operations and sold 47,300 at $12 per unit. The company chose practical activity-at 50,000 units-to compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials - $134,070

Direct labor - 101,370

Variable overhead - 70,850

Fixed overhead - 55,590

Required:

1. Calculate the cost of one unit of product under variable costing. Round your interim calculations and final answer to the nearest cent.

2. Calculate the cost of ending inventory under variable costing.

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