1.) A company produces a single product. Variable production costs are $13.4 per unit and variable selling and administrative expenses are $4.4 per unit. Fixed manufacturing overhead totals $50,000 and fixed selling and administration expenses total $54,000. Assuming a beginning inventory of zero, production of 5,400 units and sales of 4,300 units, the dollar value of the ending inventory under variable costing would be:

$14,740

$24,640

$19,580

$9,900

2.) A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price	$126
Units in beginning inventory	0
Units produced	2,630
Units sold	2,500
Units in ending inventory	130
Variable costs per unit:
Direct materials	$49
Direct labor	$17
Variable manufacturing overhead	$8
Variable selling and administrative	$9
Fixed costs:
Fixed manufacturing overhead	$84,160
Fixed selling and administrative expenses	$17,500

The total gross margin for the month under absorption costing is:

$50,000

$10,000

$96,700

$107,500

3.) Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$136
Units in beginning inventory	0
Units produced	1,870
Units sold	820
Units in ending inventory	1,050
Variable costs per unit:
Direct materials	$43
Direct labor	$34
Variable manufacturing overhead	$12
Variable selling and administrative	$11
Fixed costs:
Fixed manufacturing overhead	$14,960
Fixed selling and administrative	$21,320

What is the total period cost for the month under the variable costing?

$45,300

$30,340

$36,280

$14,960

4.) Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$112
Units in beginning inventory	0
Units produced	8,950
Units sold	8,550
Units in ending inventory	400
Variable costs per unit:
Direct materials	$18
Direct labor	$60
Variable manufacturing overhead	$6
Variable selling and administrative	$10
Fixed costs:
Fixed manufacturing overhead	$134,250
Fixed selling and administrative	$8,800

What is the net operating income for the month under variable costing?

$10,850

$(22,750)

$16,850

$6,000