Question - The following information pertains to H. Higgins Corporation:
Beginning Inventory 2,000 units
Ending Inventory 12,000 units
Direct labor per unit $25
Direct materials per unit 10
Fixed overhead per unit 15
Fixed SG&A costs per unit 7
Variable overhead per unit 5
Variable SG&A costs per unit 3
What is the value of the ending inventory using the variable costing method?
$300,000
$480,000
$600,000
$516,000