Valyn Corporation employs an absorption costing system for internal reporting purposes; however, the company is considering using variable costing. Data regarding Valyns planned and actual operations for the calendar year are presented below. Planned Actual Activity Activity Beginning finished goods inventory in units 35,000 35,000 Sales in units 140,000 125,000 Production in units 140,000 130,000 The planned per-unit cost figures shown in the schedule were based on the estimated production and sale of 140,000 units for the year. Valyn uses a predetermined manufacturing overhead rate for applying manufacturing overhead to its product; thus, a combined manufacturing overhead rate of $9.00 per unit was employed for absorption costing purposes. Any over- or underapplied manufacturing overhead is closed to the cost of goods sold account at the end of the reporting year. Planned Costs Incurred Per Unit Total Costs Direct materials $12.00 $1,680,000 $1,560,000 Direct labor 9.00 1,260,000 1,170,000 Variable manufacturing overhead 4.00 560,000 520,000 Fixed manufacturing overhead 5.00 700,000 715,000 Variable selling expenses 8.00 1,120,000 1,000,000 Fixed selling expenses 7.00 980,000 980,000 Variable administrative expenses 2.00 280,000 250,000 Fixed administrative expenses 3.00 420,000 425,000 Total $50.00 $7,000,000 $6,620,000 The beginning finished goods inventory for absorption costing purposes was valued at the previous years planned unit manufacturing cost, which was the same as the current years planned unit manufacturing cost. There are no work-in-process inventories at either the beginning or the end of the year. The planned and actual unit selling price for the current year was $70.00 per unit. Question Valyn Corporations actual manufacturing contribution margin calculated on the variable costing basis was A. $4,375,000 B. $4,935,000 C. $4,910,000 D.$5,625,000