Fact Pattern: Valyn Corporation employs an absorption costing Planned Costs Incurred system for internal reporting purposes; however, the Per Unit Total Costs company is considering using variable costing. Data Direct materials $12.00 $1,680,000 $1,560,000 regarding Valyn's planned and actual operations for Direct labor 9.00 1,260,000 1,170,000 the calendar year are presented below. Variable Planned Actual manufacturing overhead 4.00 Activity Activity 560,000 520,000 Beginning finished goods Fixed manufacturing 5.00 inventory in units overhead 700,000 35,000 35,000 715,000 Sales in units 140,000 125,000 Variable selling Production in units 140,000 130,000 expenses 8.00 1,120,000 1,000,000 Fixed selling expenses 7.00 980,000 980,000 The planned per-unit cost figures shown in the Variable schedule were based on the estimated production administrative and sale of 140,000 units for the year. Valyn uses a expenses 2.00 280,000 250,000 predetermined manufacturing overhead rate for Fixed administrative applying manufacturing overhead to its product; expenses 3.00 420,000 425,000 thus, a combined manufacturing overhead rate of Total $50.00 $7,000,000 $6,620,000 $9.00 per unit was employed for absorption costing purposes. Any over- or underapplied manufacturing The beginning finished goods inventory for absorption overhead is closed to the cost of goods sold account costing purposes was valued at the previous year's at the end of the reporting year. planned unit manufacturing cost, which was the same as the current year's planned unit manufacturing cost. There are no work-in-process inventories at either the beginning or the end of the year. The planned and actual unit selling price for the current year was $70.00 per unit. The value of Valyn Corporation's actual ending finished goods inventory on the absorption costing basis was A. $1,350,000 B. $900,000 C. $1,220,000 D. $1,200,000