The document outlines financial data for Polk Company, which builds custom fishing lures, detailing its costs, pricing, production, and sales for 2012. It also includes calculations for variable costing, required sales for a target net income for Turgo Company, margin of safety for Kozy Company, and a static budget report for Maris Company. Additionally, it mentions Gundy Company's production expectations and the need for a flexible manufacturing budget.

1. 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
$7.95
Direct labor
$2.60
Variable manufacturing overhead
$6.10
Variable selling and administrative expenses
$4.13
Fixed Costs per Year
Fixed manufacturing overhead
$249,424
Fixed selling and administrative expenses
$254,506
Polk Company sells the fishing lures for $26.50. During 2012,
the company sold 80,300 lures and produced 95,200 lures.

2. 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
$
Prepare a variable costing income statement for 2012.
POLK COMPANY
Income Statement
For the Year Ended December 31, 2012
Variable Costing
$
$

3. $
(2)

4. For Turgo Company, variable costs are 63% of sales, and fixed
costs are $179,100. Management’s net income goal is $54,074.
Compute the required sales in dollars needed to achieve
management’s target net income of $54,074.
Required sales
$
(3)
For Kozy Company, actual sales are $1,208,000 and break-even
sales are $785,200.
Compute the margin of safety in dollars and the margin of
safety ratio.
Margin of safety
$
Margin of safety ratio
%
(6)
For the quarter ended March 31, 2012, Maris Company
accumulates the following sales data for its product, Garden-
Tools: $318,000 budget; $335,300 actual.
Prepare a static budget report for the quarter.
MARIS COMPANY
Sales Budget Report
For the Quarter Ended March 31, 2012
Product Line

5. Budget
Actual
Difference
Garden-Tools
$
$
$
(7)
Gundy Company expects to produce 1,301,760 units of Product
XX in 2012. Monthly production is expected to range
from 86,150 to 123,950 units. Budgeted variable manufacturing
costs per unit are: direct materials $3, direct labor $8, and
overhead $10. Budgeted fixed manufacturing costs per unit for
depreciation are $6 and for supervision are $2.
Prepare a flexible manufacturing budget for the relevant range
value using 18,900 unit increments. (List variable costs before
fixed costs.)
GUNDY COMPANY
Monthly Flexible Manufacturing Budget
For the Year 2012

6. $
$
$
$
$
$

7. $
$
$