Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs. Variable Costs per Unit Direct materials $9.45 Direct labor $4.35 Variable manufacturing overhead $7.31 Variable selling and administrative expenses $4.91 Fixed Costs per Year $286.650 Fixed manufacturing overhead Fixed selling and administrative expenses $264.726 Siren Company sells the fishing lures for $31.50. During 2020, the company sold 82.000 lures and produced 91.000 lures.

Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs. Variable Costs per Unit Direct materials $9.45 Direct labor $4.35 Variable manufacturing overhead $7.31 Variable selling and administrative expenses $4.91 Fixed Costs per Year $286.650 Fixed manufacturing overhead Fixed selling and administrative expenses $264.726 Siren Company sells the fishing lures for $31.50. During 2020, the company sold 82.000 lures and produced 91.000 lures.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1PB: Classify costs Cromwell Furniture Company manufactures sofas for distribution to several major...

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Question

Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the
following costs.
Variable Costs per Unit
Direct materials
$9.45
Direct labor
$4.35
Variable manufacturing overhead
$7.31
Variable selling and administrative expenses
$4.91
Fixed Costs per Year
$286.650
Fixed manufacturing overhead
Fixed selling and administrative expenses
$264.726
Siren Company sells the fishing lures for $31.50. During 2020, the company sold 82.000 lures and produced 91.000 lures.

Prepare an absorption costing income statement for 2020. (Enter negative amounts using elther a negative sign preceding the
number eg.-45 or parentheses eg (45))
SIREN COMPANY
Income Statement
Absorption Costing
24

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