Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kubin Companys relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as

Kubin Companys relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows: Amount per Unit Direct materials $ 8.00 Direct labor $ 5.00 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 4.50 Fixed administrative expense $ 3.50 Sales commissions $ 2.00 Variable administrative expense $ 1.50 Required: 1. If 20,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 23,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 20,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 23,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 20,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 23,000 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 20,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 23,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? (Round per unit values to 2 decimal places.) for the answer.

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

The Software Audit Guide

Authors: John W. Helgeson

1st Edition

0873897730, 978-0873897730

More Books

Students also viewed these Accounting questions