5. Gyro Gear Company produces a single product, a special gear used in automatic transmissions. Each gear sells for $28, and the company sells 500,000 gears each year. Unit cost data are presented below:

		Variable	Fixed
	Direct material..........................	$6.00
	Direct labor...............................	$5.00
	Manufacturing overhead...........	$2.00	$7.00
	Selling & administrative............	$4.00	$3.00

The unit product cost of gears under variable costing is:

A) $13

B) $20

C) $17

D) $27

6. A company produces a single product. Variable production costs are $12 per unit and variable selling and administrative expenses are $3 per unit. Fixed manufacturing overhead totals $36,000 and fixed selling and administration expenses total $40,000. Assuming a beginning inventory of zero, production of 4,000 units and sales of 3,600 units, the dollar value of the ending inventory under variable costing would be:

A) $4,800

B) $8,400

C) $6,000

D) $3,600