E8-24: p. 370-371Exercise 8-24 Inventory Valuation under Absorption and Variable CostingOverton Comp

E8-24: p. 370-371Exercise 8-24 Inventory Valuation under Absorption and Variable CostingOverton Company produced 80,000 units last year. The company sold 79,000 units and there was no beginning inventory. The company chose practical activity—at 80,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows:Direct materials$596,000Direct labor104,000Variable overhead88,000Fixed overhead228,800Required:1.Calculate the cost of one unit of product under absorption costing.2.Calculate the cost of one unit of product under variable costing.3.Calculate the cost of ending inventory under absorption costing.4.Calculate the cost of ending inventory under variable costing.