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 | $7.73 | |
| Direct labor | $2.52 | |
| Variable manufacturing overhead | $5.92 | |
| Variable selling and administrative expenses | $4.02 | |
| Fixed Costs per Year | ||
| Fixed manufacturing overhead | $242,824 | |
| Fixed selling and administrative expenses | $247,303 |
