Felde Company builds custom fishing lures for sporting goods stores. In its firs

Question

Felde Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2014, the company incurred the following costs. Variable Costs per Unit Direct materials $7.58 Direct labor $2.47 Variable manufacturing overhead $5.81 Variable selling and administrative expenses $3.94 Fixed Costs per Year Fixed manufacturing overhead $238,293 Fixed selling and administrative expenses $242,501 Felde Company sells the fishing lures for $25.25. During 2014, the company sold 81,300 lures and produced 95,700 lures.

Assuming the company uses variable costing, calculate Felde’s manufacturing cost per unit for 2014. (Round answer to 2 decimal places, e.g.10.50.)

Explanation / Answer

P&L Account as per vaiable costing Per unit Amount Sales 25.25        20,52,825 Variable Cost Direct Material 7.58           6,16,254 Direct Labor 2.47           2,00,811 Variable Mfg Ohs 5.81           4,72,353 Variable Selling & Admin Cost 3.94           3,20,322 Contribution           4,43,085 Fixed Cost Fixed Mfg Cost           2,38,293 Fixed Selling & Admin Cost           2,42,501 Loss             -37,709 Calculation of Mfg Cost (as per variable costing) Direct Material 7.58 Direct Labor 2.47 Variable Mfg Ohs 5.81 Total Mfg cost per unit 15.86

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.