Acct wiley PLUS 19-17

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		$7.73
Direct labor		$2.52
Variable manufacturing overhead		$5.92
Variable selling and administrative expenses		$4.02
Fixed Costs per Year
Fixed manufacturing overhead		$242,824
Fixed selling and administrative expenses		$247,303

Polk Company sells the fishing lures for $25.75. During 2012, the company sold 80,600 lures and produced 95,600 lures.

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.)

Manufacturing cost per unit

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Prepare a variable costing income statement for 2012.

POLK COMPANY Income Statement For the Year Ended December 31, 2012 Variable Costing
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