25 May Siren Company Builds Custom Fishing Lures For Sporting Goods Stores. In Its First Year Of Operations, 2017, The Company Incurred The Following Costs.
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the following costs.
| Variable Costs per Unit | ||
| Direct materials | $8.18 | |
| Direct labor | $3.76 | |
| Variable manufacturing overhead | $6.32 | |
| Variable selling and administrative expenses | $4.25 | |
| Fixed Costs per Year | ||
| Fixed manufacturing overhead | $251,160 | |
| Fixed selling and administrative expenses | $229,009 |
Siren Company sells the fishing lures for $27.25. During 2017, the company sold 80,000 lures and produced 92,000 lures.
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