Information for Bob's Company is provided in E8-19.

Instructions
(a) Assuming the company uses absorption costing, calculate Bob's manufacturing cost per unit for 2016.
(b) Prepare an absorption-costing income statement for 2016.

Transcribed Image Text:

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