Felde Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2014, the company incurred the following costs.

                                    

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.