Absorption and Variable Costing; Cost of Goods Sold Bondware Inc., has a highly automated assembly line that uses very little direct labor. Therefore, direct labor is part of variable overhead. For March, assume that it incurred the following unit costs:

Direct materials	$450
Variable overhead	250
Fixed overhead	550

The 1,200 units of beginning inventory for March had an absorption costing value of $1,500,000 and a variable costing value of $840,000. For March, assume that Bondware Inc. produced 3,000 units and sold 3,500 units. Compute Bondwares March Cost of Goods Sold using both the variable and absorption costing methods.

	Cost of Goods Sold
Absorption costing	Answer
Variable costing	Answer