Lane Company produced 50,000 units during its first year of operations and sold 47,300 at $12 per unit. The company chose practical activity—at 50,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materials $123,000 Direct labor 93,000 Variable overhead 65,000 Fixed overhead 51,000 Required: Calculate the cost of one unit of product under variable costing. Calculate the cost of ending inventory under variable costing.

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A: Operating Income  = Sales - Variable Cost - Fixed Cost

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A: variable costing is a overhead which is incurred only in the period of product is produced. Given…

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A: Fixed overhead cost per unit = $572,000 / 44,000 units = $13

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A:

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A: The contribution margin is calculated as difference between sales and variable costs.

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A: Variable costing is a method of costing under which all variable costs are part of product costs.

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A: Answer 1) Calculation of Unit Cost under Absorption Costing Unit Cost = (Direct materials + Direct…

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A: The variation between actual results and the budget or standard is referred as variance.

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.