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 Calculate the cost of ending inventory under variable costing.

Principles of Accounting Volume 2
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Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
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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
Calculate the cost of ending inventory under variable
costing.
Transcribed Image Text: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 Calculate the cost of ending inventory under variable costing.
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