Variable Costing, Value of Ending Inventory, Operating Income Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Direct materials $5.00 Direct labor 3.00 Variable overhead 1.50 Fixed overhead* 7.00 Variable marketing cost 1.20 Fixed overhead per unit = $280,000 / 40,000 units produced = $7. Total fixed factory overhead is $280,000 per month. During October, 38,400 units were sold at a price of $24, and fixed marketing and administrative expenses were $130,500. Required: 1. Calculate the cost of each unit using variable costing. Round your final answer to the nearest cent. 9.5 per unit 2. How many units remain in ending inventory? 1,600 units What is the cost of ending inventory using variable costing? 15,200 Pattison Products, Inc. Variable-Costing Income Statement For the Month of October Sales 921,600 Less: Variable cost of goods sold 364,800 Variable marketing expense 46,080 Contribution margin 510,720 Less: Fixed factory overhead 280,000 Fixed marketing and administrative expenses 130,500 100,220 Operating income Feedback 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? $ 9,900 X What is operating income for November? $