M5 Variable Costing and Segment Reporting Data Selling price per unit $68 Manufacturing costs: Variable per unit produced: Direct materials $17 Direct labor $8 Variable manufacturing overhead $4 Fixed manufacturing overhead per year $120,000 Selling and administrative expenses: Variable per unit sold $5 Fixed per year $83,500 Year 1 Year 2 Units in beginning inventory 0 Units produced during the year 10,000 6,000 Units sold during the year 8,000 6,000