Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs. 

Variable Costs per Unit
Direct materials ..........................................................  $7.50
Direct labor .................................................................  $3.45
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 ...........  $210,100

Siren Company sells the fishing lures for $25. During 2020, 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 2020.

b. Prepare a variable costing income statement for 2020.

c. Assuming the company uses absorption costing, calculate Siren's manufacturing cost per unit for 2020.

d. Prepare an absorption costing income statement for 2020.