Maurice Tutor

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Category > Accounting Posted 04 Aug 2017 My Price 4.00

Siren Company

Exercise 19-17 (Part Level Submission)

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   $7.95
Direct labor   $3.66
Variable manufacturing overhead   $6.15
Variable selling and administrative expenses   $4.13
     
Fixed Costs per Year    
Fixed manufacturing overhead   $243,800
Fixed selling and administrative expenses   $222,706

Siren Company sells the fishing lures for $26.50. During 2017, the company sold 80,000 lures and produced 92,000 lures.
 
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(a)

Assuming the company uses variable costing, calculate Siren’s manufacturing cost per unit for 2017. (Round answer to 2 decimal places, e.g.10.50.)

 

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Maurice Tutor
(5)
Status NEW Posted 04 Aug 2017 09:08 PM My Price 4.00

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