ACC 561 Wiley Plus

Week 5 Assignment Write a paper of no more than 350 words after completing Exercise 19-17 in WileyPLUS in which you respond to the following questions: • In this case, would it be better to use the variable or absorption costing method, and why? • What are the benefits of the two methods? • Which method would lead to the best decision when a competitor is submitting a lower bid for your product? • Polk 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 Unit Direct materials $8.03 Direct labor $2.62 Variable manufacturing overhead $6.15 Variable selling and administrative expenses $4.17

Fixed Costs per Year Fixed manufacturing overhead $251,064 Fixed selling and administrative expenses $256,907 • Polk Company sells the fishing lures for $26.75. During 2012, the company sold 80,800 lures and produced 95,100 lures. Don’t show me this message again for the assignment

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(a)

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 $

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Week 5 Assignment 19-17 Wiley.docx