Felde
Company builds custom fishing lures for sporting goods stores. In its first
year of operations, 2014, the company incurred the following costs.
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.
|
Variable Cost per Unit
|
Fixed Costs per Year
|
|||
|
Direct materials
|
$7.50
|
Fixed manufacturing overhead
|
$225,000
|
|
|
Direct labor
|
2.45
|
Fixed selling and administrative expenses
|
240,100
|
|
|
Variable manufacturing overhead
|
5.80
|
|||
|
Variable selling and administrative expenses
|
3.90
|
|||
Felde
Company sells the fishing lures for $25.00 During 2014, the company sold 80,000
lures and produced 90,000 lures
Instructions
(a) Assuming
the company uses variable costing, calculate Felde manufacturing cost per unit
for 2014.
(b) Prepare
a variable costing income statement for 2014.
(c) Assuming
the company uses absorption costing, calculate Felde manufacturing cost per
unit for 2014.
(d) Prepare
an absorption costing income statement for 2014.
TUTORIAL
PREVIEW
(a) Assuming
the company uses variable costing, calculate Felde manufacturing cost per unit
for 2014.
|
Direct materials
|
$7.50
|
|
Direct labor
|
2.45
|
|
Variable manufacturng overhead
|
5.80
|
File name: E6-17 Felde.xls File type: .xls PRICE: $7
