Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the following costs.
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Variable Costs per Unit
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Direct materials
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$7.88
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Direct labor
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$3.62
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Variable manufacturing overhead
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$6.09
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Variable selling and administrative expenses
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$4.10
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Fixed Costs per Year
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Fixed manufacturing overhead
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$244,590
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Fixed selling and administrative expenses
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$220,605
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Siren Company sells the fishing lures for $26.25. During 2017, the company sold 81,000 lures and produced 93,000 lures.
Assuming the company uses variable costing, calculate Siren's manufacturing cost per unit for 2017.
prepare a variable costing income statement for 2017