Bob's Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2016, the company incurred the following costs:

Bob's Company sells the fishing lures for $25. During 2016, the company sold 80,000 lures and produced 95,000 lures.
Instructions
(a) Assuming the company uses variable costing, calculate Bob's manufacturing cost per unit for 2016.
(b) Prepare a variable-costing income statement for 2016.

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Variable cost per unit Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative expenses $ 6.50 2.75 5.75 3.90 Fixed costs for year Fixed manufacturing overhead Fixed selling and administrative expenses $285,000 240,100