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Assignment
Can someone please explain how this problem is done?
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the following costs.
Variable Costs per Unit
Direct materials
$7.65
Direct labor
$3.52
Variable manufacturing overhead
$5.92
Variable selling and administrative expenses
$3.98
Fixed Costs per Year
Fixed manufacturing overhead
$239,700
Fixed selling and administrative expenses
$214,302
Siren Company sells the fishing lures for $25.50. During 2017, the company sold 80,000 lures and produced 94,000 lures.
Assuming the company uses variable costing, calculate Siren's manufacturing cost per unit for 2017. (Round answer to 2 decimal places, e.g.10.50.)
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