Polk Company builds custom fishing lures for sporting goods stores. In its first
ID: 2378067 • Letter: P
Question
Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.Variable Cost per Unit Direct materials $7.95 Direct labor $2.60 Variable manufacturing overhead $6.10 Variable selling and administrative expenses $4.13 Fixed Costs per Year Fixed manufacturing overhead $249,686 Fixed selling and administrative expenses $254,506
Polk Company sells the fishing lures for $26.50. During 2012, the company sold 80,400 lures and produced 95,300 lures. Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.
Variable Cost per Unit Direct materials $7.95 Direct labor $2.60 Variable manufacturing overhead $6.10 Variable selling and administrative expenses $4.13 Fixed Costs per Year Fixed manufacturing overhead $249,686 Fixed selling and administrative expenses $254,506
Polk Company sells the fishing lures for $26.50. During 2012, the company sold 80,400 lures and produced 95,300 lures. Assuming the company uses variable costing, calculate Polk Assuming the company uses variable costing, calculate Polk Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.
Variable Cost per Unit Direct materials $7.95 Direct labor $2.60 Variable manufacturing overhead $6.10 Variable selling and administrative expenses $4.13 Fixed Costs per Year Fixed manufacturing overhead $249,686 Fixed selling and administrative expenses $254,506
Polk Company sells the fishing lures for $26.50. During 2012, the company sold 80,400 lures and produced 95,300 lures. Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.
Explanation / Answer
direct materials
$
Direct labor
$2.60
Variable manufacturing overhead
$6.10
Manufacturing cost per unit
$16.65