Costing Methods paper

week5.xlsx

Sheet1

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		$7.65
Direct labor		$2.50
Variable manufacturing overhead		$5.87
Variable selling and administrative expenses		$3.98
Fixed Costs per Year
Fixed manufacturing overhead		$238,392
Fixed selling and administrative expenses		$244,902
Polk Company sells the fishing lures for $25.50. During 2012, the company sold 80,400 lures and produced 94,600 lures.
Direct Material			7.65
Direct Labor			2.5
Var manf overhead			5.87
var selling and admn exp			3.98
Fixed manf overhead			238392
Fixed Selling and overhead ex			244902
fishing lures			25.5
sold			80400
produced			94600
a	manf cost		16.02
b	Sales				2050200
	Variable cost of good sold			1288008
	var selling and admn exp			319992
					1608000
	contribution margin				442200
	Fixed manf overhead			238392
	Fixed Selling and overhead ex			244902	483294
	net income/loss				-41094
c	manf cost		18.54
d	Sales				2050200
	Cost of Good Sold				1490616
	Gross Profit				559584
	var selling and admn exp			319992
	Fixed Selling and overhead ex			244902	564894
	net income/loss				-5310