Assignment Gradebook ORION Downloadable eTextbook Question 1 Siren Company build

Question

Assignment Gradebook ORION Downloadable eTextbook Question 1 Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the foll Variable Costs per Unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses $7.58 $3.48 $5.86 $3.94 Fixed Costs per Year Fixed manufacturing overhead Fixed selling and administrative expenses $222,640 $212,201 Siren Company sells the fishing lures for $25.25. During 2017, the company sold 79,000 lures and produced 88,000 lures. Assuming the company uses variable costing, calculate Siren's manufacturing cost per unit for 2017. (Round answer to 2 decimal places, e.g.10.s0.) Manufacturing cost per unit s LINK TO TEXT Prepare a variable costing income statement for 2017. (Enter negative amounts using either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).) 4.24.6.2 All Rights Reserved, A Divi MacBook Pro

Explanation / Answer

Answer:

A)

Assuming the company uses variable costing, calculate Polk's manufacturing cost per unit for 2017

Direct Materials

$                      7.58

Direct labour

$                      3.48

Variable manufacturing overhead

$                      5.86

Manufacturing cost per unit $

$                   16.92

____________________________________

B

SIREN COMPANY

Income Statement

For the Year Ended December 31, 2017

Variable Costing

Revenue

$        1,994,750

Direct Cost(7.58+3.48)*79000

$    873,740

Variable manufacturing overhead5.86*79000

$    462,940

$      (1,336,680)

Gross profit

$            658,070

Variable selling and administrative expenses

3.94*7900

$    308,100

Fixed manufacturing overhead

$    222,640

Fixed selling and administrative expenses

$    212,201

$         (742,941)

Net Loss

$            (84,871)

___________________________________________

C

Assuming the company uses absorption costing, calculate Polk’s manufacturing cost per unit for 2017

Direct Materials

$           7.58

Direct labour

$           3.48

Variable manufacturing overhead

$           5.86

Fixed manufacturing overhead (222640/88000)

$           2.53

Manufacturing cost per unit $

$        19.45

___________________________________________

D)

Prepare an absorption costing income statement for 2017

SIREN COMPANY

Income Statement

For the Year Ended December 31, 2017

Absorption Costing

Revenue

$        1,994,750

Direct Cost

$    873,740

Variable manufacturing overhead

$    462,940

Fixed manufacturing overhead(2.53*79000)

$    199,870

$      (1,536,550)

Gross Profit

$            458,200

Variable selling and administrative expenses

$    308,100

Fixed selling and administrative expenses

$    212,201

$         (520,301)

Net Loss

$            (62,101)

Direct Materials

$                      7.58

Direct labour

$                      3.48

Variable manufacturing overhead

$                      5.86

Manufacturing cost per unit $

$                   16.92

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