Polk Company builds custom fishing lures for sporting goods stores. In its first
ID: 2502341 • 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 $8.18 Direct labor $2.67 Variable manufacturing overhead $6.27 Variable selling and administrative expenses $4.25 Fixed Costs per Year Fixed manufacturing overhead $255,281 Fixed selling and administrative expenses $261,709
Polk Company sells the fishing lures for $27.25. During 2012, the company sold 80,600 lures and produced 94,900 lures. 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 $8.18 Direct labor $2.67 Variable manufacturing overhead $6.27 Variable selling and administrative expenses $4.25 Fixed Costs per Year Fixed manufacturing overhead $255,281 Fixed selling and administrative expenses $261,709
Polk Company sells the fishing lures for $27.25. During 2012, the company sold 80,600 lures and produced 94,900 lures. 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 $27.25. During 2012, the company sold 80,600 lures and produced 94,900 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.) By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Prepare a variable costing income statement for 2012.
Explanation / Answer
Prepare a variable costing income statement for 2012.