Akard Company produced 30,000 units during its first year of operations and sold 28,900 at $22 per

Question:

Akard Company produced 30,000 units during its first year of operations and sold 28,900 at $22 per unit. The company chose practical activity—at 30,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows:
Direct materials ......$114,000
Direct labor ..........94,500
Variable overhead .....20,400
Fixed overhead ......51,000

Required:
1. Calculate the cost of one unit of product under variable costing.
2. Calculate the cost of under variable costing.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...