Astron Company produced 30,000 units during its first year of operations and sold 28,900 at $22 per.

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Astron Company produced 30,000 units during its first year of operations and sold 28,900 at $22 per unit. The company chose practical activity-at 30,000 units-to compute its predeter- mined overhead rate. Manufacturing costs are as follows:

Direct materials ………………………. $114,000

Direct labour ………………………….. 94,500

Variable overhead …………………….. 20,400

Fixed overhead ……………………….. 51,000

1. Calculate the cost of one unit of product under variable costing.

2. Calculate the cost of ending inventory under variable costing.

3. What is the difference in inventory valuation under absorption costing and under variable costing?

Astron Company produced 30 000 units during its first year of

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