nventory Valuation under Absorption and Variable Costing

Overton Company produced 80,000 units last year. The company sold 79,000 units and there was no beginning inventory. The company chose practical activityat 80,000 unitsto compute its predetermined overhead rate. Manufacturing costs are as follows:

Direct materials	$679,440
Direct labor	118,560
Variable overhead	100,320
Fixed overhead	260,832

Required:

1. Calculate the cost of one unit of product under absorption costing. Round your interim calculations and final answer to the nearest cent. $ per unit

2. Calculate the cost of one unit of product under variable costing. Round your interim calculations and final answer to the nearest cent. $ per unit

3. Calculate the cost of ending inventory under absorption costing. $

4. Calculate the cost of ending inventory under variable costing. $