Reference no: EM132741664

Felde Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2014, the company incurred the following costs. Felde Company sells the fishing lures for $26.00. During 2014, the company sold 81,000 lures and produced 95,100 lures.

Variable Costs per Unit
Direct materials $7.80
Direct labor $2.55
Variable manufacturing overhead $5.98
Variable selling and administrative expenses $4.06
Fixed Costs per Year
Fixed manufacturing overhead $244,407
Fixed selling and administrative expenses $249,704

Manufacturing Cost per unit: $16.33

Problem 1: Create an variable costing income statement for 2014.