Sandrimo Company produced 70,000 units last year. The company sold 67,600 units and there was no beginning inventory. The company chose practical activity-at 70,000 units-to compute its predetermined overhead rate. Manufacturing costs are as follows:
Direct materials.......................... $612,500
Direct labor................................ 105,000
Variable overhead........................ 79,100
Fixed overhead........................... 269,500
Required:
1. Calculate the cost of one unit of product under absorption costing.
2. Calculate the cost of one unit of product under variable costing.
3. Calculate the cost of ending inventory under absorption costing.
4. Calculate the cost of ending inventory under variable costing.