Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kubin Company's relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its average costs per unit are as

Kubin Company's relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its average costs per unit are as follows:

Average Cost per UnitDirect materials$7.60Direct labor$4.60Variable manufacturing overhead$2.10Fixed manufacturing overhead$5.60Fixed selling expense$4.10Fixed administrative expense$3.10Sales commissions$1.60Variable administrative expense$1.10

Required:

1. If 15,000 units are produced and sold, what is the variable cost per unit produced and sold?

2. If 19,000 units are produced and sold, what is the variable cost per unit produced and sold?

3. If 15,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

4. If 19,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

5. If 15,000 units are produced, what is the average fixed manufacturing cost per unit produced?

6. If 19,000 units are produced, what is the average fixed manufacturing cost per unit produced?

7. If 15,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

8. If 19,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Microeconomics

Authors: Douglas Bernheim, Michael Whinston

2nd edition

73375853, 978-0073375854

Students also viewed these Accounting questions