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:1 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.

Cornerstones of Cost Management (Cornerstones Series)
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Chapter2: Basic Cost Management Concepts
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Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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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:1
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:1 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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