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 ........... $7.50
Direct labor ............... $2.45
Variable manufacturing overhead .... $5.80
Variable selling and administrative expenses $3.90
Fixed Costs per Year
Fixed manufacturing overhead ...... $225,000
Fixed selling and administrative expenses . $240,100
Felde Company sells the fishing lures for $25. During 2014, the company sold 80,000 lures and produced 90,000 lures.

Instructions
(a) Assuming the company uses variable Costing, calculate Felde’s manufacturing cost per unit for 2014.
(b) Prepare a variable costing income statement for 2014.
(c) Assuming the company uses absorption Costing, calculate Felde’s manufacturing cost per unit for 2014.
(d) Prepare an absorption costing income statement for 2014.