please explain in steps thanks E8.20 (LO 1)Information for Bob's Company is provided in E8.19.Instructionsa. Assuming the company uses absorption costing, calculate Bob's manufacturingcost per unit for 2022.b. Prepare an absorption-costing income statement for 2022. Calculate the product cost and prepare an income statement under variable costing.Bob's Company builds custom fishing lures for sporting goodsstores. In its first year of operations, 2022, the company incurred the following costs:E8.19 (LO 1Variable cost per unitDirect materials$6.50Direct labour2.75Variable manufacturing overhead5.75Variable selling and administrative expenses3.90Fixed costs for yearFixed manufacturing overhead$285,000Fixed selling and administrative expenses240,100Bob's Company sells the fishing lures for $25. During 2022, the company produced95,000 lures and sold 80,000.

Absorption costing also referred to as "full costing," is an accounting management technique that…

Answered: E8.20 (LO 1) Information for Bob's…

E8.20 (LO 1) Information for Bob's Company is provided in E8.19. Instructions a. Assuming the company uses absorption costing, calculate Bob's manufacturing cost per unit for 2022.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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