Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, 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 2017, 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 2017.

(b) Prepare a variable costing income statement for 2017.

(c) Assuming the company uses absorption costing, calculate Siren's manufacturing cost per unit for 2017.

(d) Prepare an absorption costing income statement for 2017.