Consider the following information pertaining to a year’s operations of Hartford Manufacturing:

Units sold ……………………………………... 1,600

Units produced ………………………………. 2,300

Direct labor …………………………………. $4,400

Direct materials used ………………………… 3,900

Fixed manufacturing overhead ………………. 3,000

Variable manufacturing overhead ………………. 400

Selling and administrative expenses (all fixed) … 850

Beginning inventories ……………………………… 0

Contribution margin …………………………… 5,500

Direct-material inventory, end …………………… 850

There are no work-in-process inventories.

1. What is the ending finished-goods inventory cost under absorption costing?

2. What is the ending finished-goods inventory cost under variable costing?