The direct labor is a variable cost.Under absorption costing, the ending inventory for the year would be valued 199500
Explanation:
product per unit = Total cost /number of units produced
= (222384+124752+208824+461040) / 27120
= 1017000/ 27120
product per unit = $ 37.5 per car
Ending inventory = (27120- 21800) *37.5
= 5320 *37.5
Ending inventory= 199500