# Polk Company _Variable costing

\$23.00

Category:

## Description

5. Polk Company builds custom fishing lures
for sporting goods stores. In its first year of operations, 2012, the company
incurred the following costs.

Variable
Cost per Unit

Direct materials —\$8.10

Direct labor—–\$2.65

expenses—– \$4.21

Fixed
Costs per Year

Polk
Company sells the fishing lures for \$27.00. During 2012, the company sold
81,000 lures and produced 95,200 lures.

Assuming the company uses variable costing, calculate Polkâ€™s
manufacturing cost per unit for 2012. (Round answer to 2 decimal places,
e.g.10.50.)

Manufacturing cost per unit \$16.96

=”msonormal”>

In this case, would it be better to use the
variable or absorption costing method, and why=”msonormal”>

What are the benefits of the two methods?

=”msonormal”>=”msonormal”>

=”msonormal”>=”msonormal”>

Which method would lead to the best
decision when a competitor is submitting a lower bid for your product?

=”msonormal”>
=”msonormal”>

## Reviews

There are no reviews yet.