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 $123,000 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.