Expert Answer :Polk Company builds custom fishing lures for sport

Solved by verified expert :Exercise 19-17Polk 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 UnitDirect materials$8.18Direct labor$2.67Variable manufacturing overhead$6.27Variable selling and administrative expenses$4.25Fixed Costs per YearFixed manufacturing overhead$257,164Fixed selling and administrative expenses$261,709Polk Company sells the fishing lures for $27.25. During 2012, the company sold81,100lures and produced95,600lures.(a)Your answer is correct.Assuming the company uses variable costing, calculate Polk’s manufacturing cost per unit for 2012.(Round answer to 2 decimal places, e.g.10.50.)Manufacturing cost per unit$Show SolutionShow AnswerLink to TextBy accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.Attempts: 1 of 3 used(b)Prepare a variable costing income statement for 2012.POLK COMPANYIncome StatementFor the Year Ended December 31, 2012Variable CostingAdministrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses$Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses$Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative ExpensesAdministrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative ExpensesAdministrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative ExpensesAdministrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative ExpensesAdministrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses$Link to TextBy accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.Attempts: 0 of 3 usedSave for laterSubmit Answer(c)The parts of this question must be completed in order. This part will be available when you complete the part above.(d)The parts of this question must be completed in order. This part will be available when you complete the part above.PLEASE KEEP ON MIND THE ITEMS C AND D WILL SHOW UP AFTER ANSWERING ITEM B, GIVE ME A QUOTE FOR ITEMS B,C,D AND NOT FOR SEPARATE, EVERY ITEM HAS THE SAME LEVEL OF COMPLEXITY