Siren Company builds custom fishing lures for sporting goods stores. In its firstyear of

operations, $2022,$ the company incurred the following costs.

UnitVariableCasts

Directmateriak

Directlabor

Variable manufacturing overhead

Variable selling and admin istrative expenses

AnnualFixed$\_$costs

Fixed manu facturing overhead

Fix ed selling and administrative expenses

$210,100$

Siren Company sells the fishing lures for $$25.$ During $2022,$ the company sold $80,000$ lures and produced

$90,000$ lures.

Instructions

a$.$ Assuming the company uses variable costing, calcu late Siren's manufacturing cost

per unitfor $2022.$

b$.$ Prepare avariable costing in come statement for $2022.$

c$.$ Assuming the company uses absorption costing, calcu late Siren's manu facturing

costper unitfor $2022.$

d$.$ Prepare an absorption costing income statementfor $2022.$

NOTE: Enter a formula, a cell reference, or a value $($if you are unable to reference a cell$),$ into the

yellow shaded input cells.

Additional Question

Assume that variable overhead costs changed to $$6\mathrm{.}10$ per unitand to tal fix ed manufacturing overhead

increased to $$275,000.$ What is the impactof these chan ges on the unitproduct costs and net income under

variable and absorption costing.

a$.$ UnitCost$($Variablecosting$)$

Directmateriak

Directlabor

Variable manu facturing overhead

Manufacturing costper unit

b$.$

SIREN COMPANY

In come Statement

For the Year Ended December $31,2022$

VariablaCosting

c$.$ UnitCost$($Absomtion$\_$eosting$)$

Directmaterials

Direct labor

Variable manu facturing overhead

Fixed manu facturing overhead

Manufacturing costper unit

d$.$

SIREN COMPANY

In come Statement

For the Year Ended December $31,2022$

Absomtion$\_$Costing