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 materia		$7.95
Direct labor		$2.60
Variable manufacturing overhead		$6.10
Variable selling and administrative expenses		$4.13
Fixed Costs per Year
Fixed manufacturing overhead		$248,638
Fixed selling and administrative expenses		$254,506

Felde Company sells the fishing lures for $26.50. During 2014, the company sold 80,800 lures and produced 94,900 lures.

A) Assuming the company uses variable costing, calculate Feldes manufacturing cost per unit for 2014.

B) Prepare a variable costing income statement for 2014.

C) Assuming the company uses absorption costing, calculate Feldes manufacturing cost per unit for 2014.

D) Prepare an absorption costing income statement for 2014.