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 activityat 50,000 unitsto compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials

$134,070

Direct labor

101,370

Variable overhead

70,850

Fixed overhead

55,590

Required:

1.Calculate the cost of one unit of product under variable costing. Round your interim calculations and final answer to the nearest cent.per unit

2.Calculate the cost of ending inventory under variable costing.