1.

Lenart Corporation has provided the following data for its two most recent years of operation:

Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials	$	13
Direct labor	$	6
Variable manufacturing overhead	$	4
Fixed manufacturing overhead per year	$	70,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold	$	6
Fixed selling and administrative expense per year	$	83,000

	Year 1	Year 2
Units in beginning inventory	0	1,000
Units produced during the year	10,000	7,000
Units sold during the year	9,000	6,000
Units in ending inventory	1,000	2,000

The unit product cost under absorption costing in Year 2 is closest to:

2.

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

Selling price	$	117
Units in beginning inventory		0
Units produced		2,900
Units sold		2,500
Units in ending inventory		400
Variable costs per unit:
Direct materials	$	32
Direct labor	$	45
Variable manufacturing overhead	$	2
Variable selling and administrative expense	$	9
Fixed costs:
Fixed manufacturing overhead	$	43,500
Fixed selling and administrative expense	$	15,000

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

3.

Bryans Corporation has provided the following data for its two most recent years of operation:

Selling price per unit	$	53
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials	$	13
Direct labor	$	6
Variable manufacturing overhead	$	5
Fixed manufacturing overhead per year	$	63,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold	$	4
Fixed selling and administrative expense per year	$	71,000

	Year 1		Year 2
Units in beginning inventory	0		3,000
Units produced during the year	9,000		7,000
Units sold during the year	6,000		7,000
Units in ending inventory	3,000		3,000

The unit product cost under absorption costing in Year 1 is closest to: