Bridgeport's Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2022, the company incurred
the following costs:
Variable cost per unit
Direct materials
$6.95
Direct labour
2.80
Variable manufacturing overhead
5.95
Variable selling and administrative expenses
3.60
Fixed costs for year
Fixed manufacturing overhead
$411,510
Fixed selling and administrative expenses
240,300
Bridgeport's Company sells the fishing lures for $27.00. During 2022, the company produced 95,700 lures and sold 71,600.
(a)
Your answer is correct.
Assuming the company uses absorption costing, calculate Bridgeport's manufacturing cost per unit for 2022. (Round per unit
calculations and final answer to 2 decimal places, e.g. 15.25.)
Manufacturing cost
$
20.00
per unit