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	$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. Round your answer to the nearest cent.

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