Boulder Blowers Produces Snow Blowers In Addition, the Company Has Fixed Selling and Administrative Costs

Multiple Choice

Boulder Blowers produces snow blowers.The selling price per snow blower is $100.Costs involved in production are: $\begin{array}{lr}\text { Direct material per unit } & 20 \\\text { Direct labor per unit } & 12 \\\text { Variable manufacturing overhead per unit } & 10 \\\text { Fixed manufacturing overhead per year } & 148,500\end{array}$ In addition, the company has fixed selling and administrative costs of $150,000 per year.During the year, Boulder produces 45,000 snow blowers and sells 30,000 snow blowers.There was no beginning inventory.What is the value of ending inventory using variable costing?

A) $679,500
B) $630,000
C) $652,500
D) $780,000