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

Siren Company sells the fishing lures for $25. During 2022, the company sold 80,000 lures and produced 90,000 lures.

Instructions
a. Assuming the company uses variable costing, calculate Siren's manufacturing cost per unit for 2022.
b. Prepare a variable costing income statement for 2022.
c. Assuming the company uses absorption costing, calculate Siren's manufacturing cost per unit for 2022.
d. Prepare an absorption costing income statement for 2022.

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Unit Variable Costs Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Annual Fixed Costs Fixed manufacturing overhead Fixed selling and administrative expenses $7.50 $3.45 $5.80 $3.90 $225,000 $210,100