Bob\'s Company builds custom fishing lures for sporting goods stores. In its fir
ID: 2344613 • Letter: B
Question
Bob's Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2010, the company incurred the following costs.Variable Cost per Unit
Direct material $7.50
Direct labor $2.45
Variable manufacturing overhead $5.75
Variable selling and administrative expense $3.90
Fixed Costs per Year
Fixed manufacturing overhead $234,650
Fixed selling and administrative expense $240,100
Bob's Company sells the fishing lures for $25. During 2010, the company sold 80,000 lures and produced 95,000 lures.
Assuming the company uses variable costing, calculate Bob's manufacturing cost per unit for 2010. (Round answer to 2 decimal places, e.g. 10.50.)
$
Complete the variable costing income statement for 2010. (List expenses from largest to smallest amount, e.g. 10, 5, 2. If a net loss record amount use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)
BOB'S COMPANY
Income Statement
*** i have all of these except the variable of cost of goods sold... how do i get it?
Explanation / Answer
1. Add the variable costs together; multiply that by 95000 - that gives you the total variable costs. Call that total VC 2 Add the two fixed cost values to VC; get a new total, call it TC 3. Divide TC by 95000