w Policies w Attempt History rent Attempt in Progress iren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the ollowing costs. Variable Costs per Unit Direct materials $10.50 Direct labor $4.83 Variable manufacturing overhead Variable selling and administrative expenses $8.12 $5.46 Fixed Costs per Year Fixed manufacturing overhead Fixed selling and administrative expenses $322,000 $294,140 Siren Company sells the fishing lures for $35.0O. During 2020, the company sold 79,000 lures and produced 92,000 lures. (a)

w Policies w Attempt History rent Attempt in Progress iren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the ollowing costs. Variable Costs per Unit Direct materials $10.50 Direct labor $4.83 Variable manufacturing overhead Variable selling and administrative expenses $8.12 $5.46 Fixed Costs per Year Fixed manufacturing overhead Fixed selling and administrative expenses $322,000 $294,140 Siren Company sells the fishing lures for $35.0O. During 2020, the company sold 79,000 lures and produced 92,000 lures. (a)

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

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

A) assuming the company uses absorption costing, calculate sirens manufacturing cost per unit for 2020?

ew Policies
ow Attempt History
rrent Attempt in Progress
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
$10.50
Direct labor
$4.83
$8.12
Variable manufacturing overhead
Variable selling and administrative expenses
$5.46
Fixed Costs per Year
$322,000
Fixed manufacturing overhead
Fixed selling and administrative expenses
$294,140
Siren Company sells the fishing lures for $35.00. During 2020, the company sold 79,000 lures and produced 92,000 lures.
(a)
hp

Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.

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