The following information pertains to Synergy Inc. for last year:

Required:
1. Calculate the cost of one unit of product under absorption costing.
2. Calculate the cost of one unit of product under variable costing.
3. How many units are in ending inventory?
4. Calculate the cost of ending inventory under absorption costing.
5. Calculate the cost of ending inventory under variable costing.

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Beginning inventory in units Units produced Units sold 20,000 17,200 Costs per unit: Direct materials $8.00 Direct labour $4.00 $1.50 Variable overhead Fixed overhead* $4.15 Variable selling expenses Fixed selling and administrative costs $3.00 $24,300 Fixed overhead totals $83,000 per year.