Siren Company builds custom fishing lures for sporting goods stores. In its firs
ID: 2528769 • Letter: S
Question
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the following costs Variable Costs per Unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses $7.80 $3.59 $6.03 $4.06 Fixed Costs per Year Fixed manufacturing overhead Fixed selling and administrative expenses $239,200 $218,504 Siren Company sells the fishing lures for $26.00. During 2017, the company sold 82,000 lures and produced 92,000 lures Your answer is correct. Assuming the company uses variable costing, calculate Siren's manufacturing cost per unit for 2017. (Round answer to 2 decimal places, e.g.10.5O.) Manufacturing cost per unit 17.42 Attempts: 1 of 15 usec Your answer is partially correct. Try again Prepare a variable costing income statement for 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45)) SIREN COMPANY Income Statement Variable Costing $213200 ariable Cost of Goods Sol ariable Selling and Administrative Expense ontribution Mar ixed Manufacturing Overhead ixed Selling and Administrative Expense 577 et Income/(Loss Attempts: 4 of 15 usedExplanation / Answer
SIREN COMPANY Income Statement Variable costing Sales $ 2,132,000 Variable cost of goods sold ($17.42*82,000) $ 1,428,440 Variable selling and administrative expenses ($4.06*82,000) $ 332,920 $ 1,761,360 Contribution margin $ 370,640 Fixed manufacturing overhead $ 239,200 Fixed selling and administrative expenses $ 218,504 $ 457,704 Net income $ (87,064)