Polk Company builds custom fishing lures for sporting goods stores. In its first
ID: 2419148 • 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.
Polk Company sells the fishing lures for $26.00. During 2012, the company sold 80,800 lures and produced 95,800 lures.
Assuming the company uses variable costing, calculate Polk’s manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)
Variable Cost per Unit Direct materials $7.80 Direct labor $2.55 Variable manufacturing overhead $5.98 Variable selling and administrative expenses $4.06 Fixed Costs per Year Fixed manufacturing overhead $246,206 Fixed selling and administrative expenses $249,704Explanation / Answer
Details Cost Per Unit Direct materials 7.8 Direct labor 2.55 Variable manufacturing overhead 5.98 Total Variable Mfg Cost Per Unit 16.33