Unit Costs, Inventory Valuation, Variable and Absorption Costing Snyder Company produced 86,400 units during its first year of operations and sold 84,550 at $21.91 per unit. The company chose practical activityat 86,400 unitsto compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $519,264 Direct labor 73,440 Expected and actual variable overhead 379,296 Expected and actual fixed overhead 441,504

Unit Costs, Inventory valuation, variable and Absorption Costing costs are as follows: Required: If required, round unit cost answers to the nearest cent. 1. Calculate the unit cost and the cost of finished goods inventory under absorption costing. 2. Calculate the unit cost and the cost of finished goods inventory under variable costing. 3. What is the dollar amount that would be used to report the cost of finished goods inventory to external parties? = Why? Because absorption costing is required for external roporting Because absorption costing is a more accurate method Because absorption costing always rusults in highar net incomn