finance

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
$8.03
Direct labor
$2.62
Variable manufacturing overhead
$6.15
Variable selling and administrative expenses
$4.17

Fixed Costs per Year
Fixed manufacturing overhead
$249,744
Fixed selling and administrative expenses
$256,907

Polk Company sells the fishing lures for $26.75. During 2012, the company sold 80,100 lures and produced 94,600 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
$

Prepare a variable costing income statement for 2012

Assuming the company uses absorption costing , calculate Polk Manufacturing cost per unit for 2012 Round to nearest 2 decimal places 

Prepare an absorption costing income statement for 2012







Question 6

For the quarter ended March 31, 2012, Maris Company accumulates the following sales data for its product, Garden-Tools: $310,400 budget; $333,800 actual.

Prepare a static budget report for the quarter.

Question 7

Gundy Company expects to produce 1,283,400 units of Product XX in 2012. Monthly production is expected to range from 75,330 to 113,050 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $3.

Prepare a flexible manufacturing budget for the relevant range value using 18,860 unit increments. (List variable costs before fixed costs.)