Exercises Chapter 6 E6-17 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 ...... $7.50 Direct labor ...... . ....$2.45 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 ... 240,100 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 Manufacturing Cost per Unit under Variable Costing Method Cost Amount $ Total Manufacturing Unit Cost $ (b) Prepare a variable costing income statement for 2014 Variable Costing Income Statement Sales Variable costs: Total Variable costs Contribution Margin Fixed Costs Total Fixed Costs Net Income or (Loss) from operation