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 3.00 1.50 7.00 Direct labor Variable overhead Fixed overhead Variable marketing cost 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 1:20 $130,500 Required: 1. Calculate the cost of each unit using variable costing Round your final answer to the nearest cent. 16.5 X per unit 2. How many units remain in ending Inventory? 1,600 units What is the cost of ending inventory using variable costing? 26,400 X 3. Prepare a variable-costing income statement for Pattison Products, Inc., for the month of October. Pattison Products, Inc. Variable-Costing Income Statement For the Month of October Sales 921,600 613,600 X 288,000 x Less: Variable cost of goods sold Variable marketing expense Contribution margin Less: Fixed factory overhead Fixed marketing and administrative expenses 46,080 x 130,500X 111,420 X Operating Income Foosback 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? 127,800 x