Felde Company builds custom fishing lures for sporting goods stores. I
accounting teacher (Not rated)
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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.
- 8 years ago
Felde Company builds custom fishing lures for sporting goods stores. I
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