1. Kubin Companys relevant range of production is 26,000 to 35,500 units. When it produces and sells 30,750 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	8.60
Direct labor	$	5.60
Variable manufacturing overhead	$	3.10
Fixed manufacturing overhead	$	6.60
Fixed selling expense	$	5.10
Fixed administrative expense	$	4.10
Sales commissions	$	2.60
Variable administrative expense	$	2.10

Assume that Kubin Company produced 30,750 units and expects to sell 30,390 of them. If a new customer unexpectedly emerges and expresses interest in buying the 360 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer?

2. Kubin Companys relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	7.40
Direct labor	$	4.40
Variable manufacturing overhead	$	1.90
Fixed manufacturing overhead	$	5.40
Fixed selling expense	$	3.90
Fixed administrative expense	$	2.90
Sales commissions	$	1.40
Variable administrative expense	$	0.90

For financial accounting purposes, what is the total amount of product costs incurred to make 18,000 units?

For financial accounting purposes, what is the total amount of period costs incurred to sell 13,000 units?

3. Kubin Companys relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	8.70
Direct labor	$	5.70
Variable manufacturing overhead	$	3.20
Fixed manufacturing overhead	$	6.70
Fixed selling expense	$	5.20
Fixed administrative expense	$	4.20
Sales commissions	$	2.70
Variable administrative expense	$	2.20

Assume the cost object is the companys various sales representatives. Furthermore, assume that the company spent $117,600 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives compensation.

a. When the company sells 28,000 units, what is the total direct selling expense that can be readily traced to individual sales representatives? (Round per unit value to 2 decimal places.)

b. When the company sells 28,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?