Felde Company builds custom fishing lures for sporting goods stores
*E6-17 Felde Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2014, the company incurred the following  costs.
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Variable Costs per Unit
Direct materials                                                                 $7.50
Direct labor                                                                          $2.45
Variable manufacturing overhead                                  $5.80 Variable selling and administrative expenses                                                                               $3.90
Fixed Costs per Year
Fixed manufacturing overhead                                 $225,000 Fixed selling and administrative expenses                                                                                         $240,100
Felde Company sells the fishing lures for $25. During 2014, the company sold 80,000 lures and produced 90,000 lures.
Instructions
(a) Assuming the company uses variable costing, calculate Felde’s manufacturing cost per unit for 2014.
(b)Â Prepare a variable costing income statement for 2014.
(c)  Assuming the company uses absorption costing, calculate Felde’s manufacturing cost per unit for 2014.
(d)Â Prepare an absorption costing income statement for 2014.
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Answers
Status NEW
Posted 28 Jul 2017 10:07 AM
My Price 8.00
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