Oriole Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2022, the company incurred the following costs. Variable Costs per Unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed Costs per Year Fixed manufacturing overhead Fixed selling and administrative expenses $9.90 $4.55 $7.66 $5.15 $303,600 $277,332 Oriole Company sells the fishing lures for $33.00. During 2022. the company sold 80,000 lures and produced 92,000 lures,

Oriole Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2022, the company incurred the following costs. Variable Costs per Unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Fixed Costs per Year Fixed manufacturing overhead Fixed selling and administrative expenses $9.90 $4.55 $7.66 $5.15 $303,600 $277,332 Oriole Company sells the fishing lures for $33.00. During 2022. the company sold 80,000 lures and produced 92,000 lures,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Sales
Variable Cost of Goods Sold
Variable Selling and Administrative Expenses
Contribution Margin
Fixed Selling and Administrative Expenses
Fixed Manufacturing Overhead
For the Year Ended December 31, 2022
Variable Costing
Net Income/(Loss)
ORIOLE COMPANY
Income Statement
V
$
2507920
277332
303600 i
$
2640000
437800
10

Oriole Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2022, the company incurred the
following costs.
Variable Costs per Unit
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and administrative expenses
Fixed Costs per Year
Fixed manufacturing overhead
Fixed selling and administrative expenses
$9.90
$4.55
$7.66
$5.15
$303,600
$277.332
Oriole Company sells the fishing lures for $33.00. During 2022, the company sold 80,000 lures and produced 92,000 lures.

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