Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chech Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its average costs per unit are

image text in transcribed
Chech Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Aount per Unit $ 8.80 $5.80 $ 3.30 $6.80 $5.30 $ 4.30 $ 2.80 2.30 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 29.750 to 29.751 units? 2. What is the incremental cost incurred if the company increases production and sales from 29,750 to 29,751 units? 3. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges and expresses interest in buying the 380 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? 4. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges and expresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? Complete this question by entering your answers in the tabs below. Required 1 I Required 2 Required 3 Required 4 What is the incremental manufacturing cost incurred if the company increases production from 29.750 to 29,751 units? (Round your answers to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Tax Audit Guidelines For The State Of California Employment Development Department

Authors: State Of California, Employment Development Department

1st Edition

B0C1J7KT6R, 979-8390634066

More Books

Students also viewed these Accounting questions

Question

Describe how to train managers to coach employees. page 404

Answered: 1 week ago

Question

Discuss the steps in the development planning process. page 381

Answered: 1 week ago