Information for Bob's Company is provided in E8-19.
In E8-19
Variable cost per unit
Direct materials ......................................................... $ 6.50
Direct labour ............................................................ 2.75
Variable manufacturing overhead .................................... 5.75
Variable selling and administrative expenses ....................... 3.90
Fixed costs for year
Fixed manufacturing overhead .................................... $285,000
Fixed selling and administrative expenses .........................240,100
Instructions
(a) Assuming the company uses absorption costing calculate Bob's manufacturing cost per unit for 2012.
(b) Prepare an absorption-costing income statement for 2012.