Question:
Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.
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Variable Cost per Unit
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Direct materials
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$8.10
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Direct labor
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$2.65
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Variable manufacturing overhead
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$6.21
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Variable selling and administrative expenses
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$4.21
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Fixed Costs per Year
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Fixed manufacturing overhead
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$255,252
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Fixed selling and administrative expenses
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$259,308
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Polk Company sells the fishing lures for $27.00. During 2012, the company sold 81,200 lures and produced 95,600 lures.
Assuming the company uses variable costing, calculate PolkAc€?cs manufacturing cost per unit for 2012