1. Swifty Corporation sells its product for $70 per unit. During 2016, it produced 60000 units and sold 50000 units (there was no beginning inventory). Costs per unit are: direct materials $19, direct labor $15, and variable overhead $5. Fixed costs are: $720000 manufacturing overhead, and $90000 selling and administrative expenses. Ending inventory under variable costing is

$1950000.

$510000.

$700000.

$390000.

2.For Crane Company, sales is $1000000, fixed expenses are $300000, and the contribution margin ratio is 36%. What are the total variable expenses?

$1000000

$192000

$640000

$360000