Fantastic Carvings manufactures furniture. They have decided to develop an activity-based costing system. Shown below is each activity, its cost and the activity driver used to assign these costs to products.

Activity	Activity cost	Activity Driver	Quantity of Activity Driver
Process orders	$37,800	#orders	1500
Make patterns	$140,000	#items made	8000
Carving	$200,000	#hours taken	2150
Finishing	$186,200	#items made	7000

Under an activity-based costing system, what is the activity cost per unit of activity driver for Carving?

Select one:

$25.40

$93.02

$25.20

$62.00

The Brewing Company manufactures a single product; the standard costs per unit being variable manufacturing $8, fixed manufacturing $6. Selling and administrative costs are $2 per unit sold. The selling price is $20 per unit. Actual and budgeted fixed overhead is $900 000 for the year. Information about Brewing's production activity for the year is

Sales 125 000 units

Units produced 150 000 units

What is the value of closing inventory of finished goods under variable costing?

Select one:

$480 000

$420 000

$400 000

$120 000