Daltin Company produced 50,000 units during its first year of operations and sold 48,900 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........................... $118,500
Direct labor................................... 93,000
Variable overhead........................... 65,000
Fixed overhead...............................51,000
Required:
1. Calculate the cost of one unit of product under variable costing.
2. Calculate the cost of ending inventory under variable costing.