Johnson Company estimates that its production workers will work 88,000 direct labor hours to produce 8,800 units during the upcoming period and that overhead costs will amount to $880,000. During the year, its manufacturing employees actually worked 100,000 direct labor hours to produce 10,000 units and incurred $1,100,000 of overhead costs. Because the goods made by Johnson are homogeneous (that is, they are identical), the company has decided it makes sense to use number of units as the allocation base for overhead. Based on this information the predetermined overhead rate is:

Options are

$11.00 per direct labor hour.

$100.00 per unit.

$110.00 per unit.

$10.00 per direct labor hour.

The accounting records for Moss Manufacturing Company included the following cost information relating to its first year of operations:

Direct materials	$	60,000
Direct labor	$	80,000
Fixed manufacturing overhead	$	100,000
Variable manufacturing overhead	$	20,000

1.) Assume the company produced 10,000 units of inventory and sold 6,000 of these units for $196,000. What amount of finished goods will be reported on the balance sheet at the end of the year under variable costing?

2.) Assume the company produced 10,000 units of inventory and sold 6,000 of these units during the year for $192,000. The cost per unit under variable and absorption costing would be, respectively: