Absorption and Variable Costing; Inventory Valuation Bondware Inc., has a highly automated assembly line that uses very little direct labor. Therefore, direct labor is part of variable overhead. For March, assume that it incurred the following unit costs:

Direct materials$450Variable overhead250Fixed overhead550

The 1,200 units of beginning inventory for March had an absorption costing value of $1,500,000 and a variable costing value of $840,000. For March, assume that Bondware Inc. produced 3,000 units and sold 3,500 units. Computer Bondware's March amount of ending inventory under both absorption and variable costing if the FIFO inventory method was used.

Ending InventoryAbsorption costing Variable costing