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TroutPro Co. manufactures fishing equipment. During 2019, total costs associated with manufacturing 15,000 fly-cast fishing rods (a new product introduced this year) were as follows:
TroutPro Co. manufactures fishing equipment. During 2019, total costs associated with manufacturing 15,000 fly-cast fishing rods (a new product introduced this year) were as follows: Raw materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 62,100 16,500 11,250 18,000 Required: a. Calculate the cost per fishing rod under both variable costing and absorption costing. (Round your answers to 2 decimal places.) each Variable cost per rod Absorption cost per rod each b. If 300 of these fishing rods were in finished goods inventory at the end of 2019, by how much and in what direction (higher or lower) would 2019 operating income be different under variable costing than under absorption costing? (Do not round intermediate calculations.) Under variable costing, operating income would be C-1. Express the fishing rod cost in a cost formula. (Round your answers to 2 decimal places.) Total cost = per fishing rod produced C-2. What does this formula suggest the total cost of making an additional 200 fishing rods would be? (Do not round intermediate calculations.) Total additional cost
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