Use the following information to answer the next two questions: Honda Heaven produces and sells an auto part for $20.00 per unst Direct materials are $8 per unit, while direct manufacturing labour averages $1.50 per unit. Variable overhead is $0.50 per unit and fixed overhead is $250,000 per year. Administrative expenses, all fixed, run $90,000 per year, with sales commissions of $2 per part. Production is 100,000 parts per year. And this year, 75,000 boxes weresold 15. What is the inventory cost per box using variable costing? a. $9.50 b 51650 c. $14.50 d. $10.00 c. $12.50 16. What is the inventorial cost per box using absorption costing? a. $10.00 b. $16.50 c. $14.50 d. $12.50 c. $9.50 17. At the end of Killo Co.'s first year of operations, 1,000 units of inventory remaned on hand Variable and fixed manufacturing costs per unit were $90 and $20, respectively. If Killo uses absorption costing, its net operating income would be higher than if it used variable costing by: a. 50 b. $20,000 c. $70,000 d. $90,000 18. Last year, Clayton Company's variable production costs totaled $8,000 and its fixed manufacturing overhead costs totaled $4,800. The company produced 4,000 units during the year and sold 3,600 units. A ssuming no units in the beginning inventory: a under variable costing, the units in ending itaventory will cost $320 each b. the net operating income under absorption costing for the yea will be $480 lower than net operating income under variable costing c. the ending inventory under variable costing will be $480 lower than the ending inventory under absorption costing d. the net operatiug income under absorption costing for the year will be $800 lower than net operating income under variable costing