1. Consider the following information pertaining to a years operations of Hartford Manufacturing:

Units sold- 1,600 Units produced- 2,300 Direct labor- $4,400 Direct materials used- 3,900 Fixed manufacturing overhead- 400 Variable manufacturing overhead- 850 Selling and administrative expenses (all fixed) Beginning inventories- 0 Contribution margin- 5,500 Direct-material inventory, end- 850

There are no work-in-process inventories.

A. What is the ending finished-goods inventory cost under variable costing?

2. Kwan Manufacturing Company data for 20X0 follow:

Sales: 11,000 units at $19 each

Actual production- 15,500 units Expected volume of production- 15,000 units

Manufacturing costs incurred

Variable- $124,000

Fixed- 54,000

Nonmanufacturing costs incurred

Variable- $11,000

Fixed- 17,800

1. Determine operating income for 20X0, assuming the firm uses the variable-costing approach to product costing. (Do not prepare a statement.)