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Montana Industries has computed the following unit costs for the year just ended: Variable manufacturing overhead $ 85 Fixed manufacturing overhead 20 Variable selling and

Montana Industries has computed the following unit costs for the year just ended:

Variable manufacturing overhead $ 85
Fixed manufacturing overhead 20
Variable selling and administrative cost 18
Fixed selling and administrative cost 11

Which of the following choices correctly depict amounts included in the per-unit cost of inventory under variable costing and absorption costing?

Variable, $85; absorption, $105.
Variable, $85; absorption, $116.
Variable, $103; absorption, $116.
Variable, $103; absorption, $105.
None of the answers is correct.

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