Bob’s Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2022, the company incurred the following costs: 

Bob’s Company sells the fishing lures for $25. During 2022, the company produced 95,000 lures and sold 80,000. 

Instructions 

a. Assuming the company uses variable costing, calculate Bob’s manufacturing cost per unit for 2022. 

b. Prepare a variable-costing income statement for 2022. 

Transcribed Image Text:

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