(Production cost; absorption vs. variable costing) Torodova Ltd. began busi¬ ness in 2006, during which it produced 104,000 quarts of olive oil. In 2006 it sold 98,000 quarts. Costs incurred during the year were as follows:

a. What was the actual production cost per quart under variable costing? Under absorption costing?

b. What was variable cost of goods sold for 2006 under variable costing?

c. What was cost of goods sold for 2006 under absorption costing?

d. What was the value of ending inventory under variable costing? Under absorption costing?

e. How much fixed overhead was charged to expense in 2006 under vari¬ able costing? Under absorption costing?LO1.

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Ingredients used Direct labor Variable overhead Fixed overhead Variable selling expenses Fixed selling and administrative expenses Total actual costs $224,000 104,000 192,000 93,600 40,000 112,000 $765,600