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Polk Company _Variable costing




Question;5. 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 ---$8.10;Direct labor-----$2.65;Variable manufacturing overhead----$6.21;Variable selling and administrative;expenses----- $4.21;Fixed;Costs per Year;Fixed manufacturing overhead-- $254,184;Fixed selling and administrative expenses---$259,308;Polk;Company sells the fishing lures for $27.00. During 2012, the company sold;81,000 lures and produced 95,200 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 $16.96="msonormal">In this case, would it be better to use the;variable or absorption costing method, and why="msonormal">What are the benefits of the two methods?="msonormal">="msonormal">="msonormal">="msonormal">Which method would lead to the best;decision when a competitor is submitting a lower bid for your product?="msonormal">="msonormal">


Paper#37354 | Written in 18-Jul-2015

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