Exercise 19-17 (Part Level Submission)

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

Variable Costs per Unit
Direct materials		$8.10
Direct labor		$2.65
Variable manufacturing overhead		$6.21
Variable selling and administrative expenses		$4.21
Fixed Costs per Year
Fixed manufacturing overhead		$254,451
Fixed selling and administrative expenses		$259,308

Felde Company sells the fishing lures for $27.00. During 2014, the company sold 80,800 lures and produced 95,300 lures.

(a)

	Your answer is correct.

Assuming the company uses variable costing, calculate Feldes manufacturing cost per unit for 2014. (Round answer to 2 decimal places, e.g.10.50.)

Manufacturing cost per unit

$

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SHOW ANSWER

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Attempts: 1 of 3 used

(b)

	Your answer is correct.

Prepare a variable costing income statement for 2014.

FELDE COMPANY Income Statement For the Year Ended December 31, 2014 Variable Costing

Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses

$

Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses

$

Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses

Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses

Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses

Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses

Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses

$

SHOW SOLUTION

SHOW ANSWER

LINK TO TEXT

Attempts: 2 of 3 used

(c)

Assuming the company uses absorption costing, calculate Feldes manufacturing cost per unit for 2014. (Round answer to 2 decimal places, e.g.10.50.)

Manufacturing cost per unit

$