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....

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:

Required:

1. 
   

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

   
   


2. 
   

   Calculate the cost of ending inventory under variable costing.