Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.
| Variable Cost per Unit |
|
|
| Direct materials |
|
$8.18 |
| Direct labor |
|
$2.67 |
| Variable manufacturing overhead |
|
$6.27 |
| Variable selling and administrative expenses |
|
$4.25 |
|
|
|
| Fixed Costs per Year |
|
|
| Fixed manufacturing overhead |
|
$257,164 |
| Fixed selling and administrative expenses |
|
$261,709 |
Polk Company sells the fishing lures for $27.25. During 2012, the company sold81,100lures and produced95,600lures.
a) Assuming the company uses variable costing, calculate Polk's manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)
b)The parts of this question must be completed in order. This part will be available when you complete the part above.
(c) The parts of this question must be completed in order. This part will be available when you complete the part above.