Refer to the information for Romer Company on the shown below.
Romer Company produced 14,000 units during its first year of operations and sold 13,800 at $ 22 per unit. The company chose practical activity— at 14,000 units— to compute its pre-determined overhead rate. Manufacturing costs are as follows:
Direct materials ..........$88,200
Direct labor ..........105,000
Variable overhead ......... 15,820
Fixed overhead .......... 49,000
Required:
1. Calculate the cost of one unit of product under variable costing.
2. Calculate the cost of ending inventory under variable costing.