Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kubin Company's 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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Kubin Company's 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: 5 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales Commissions Variable administrative expense Average cost per Unit $ 8.00 $ 5.00 $ 2.50 $ 6.00 $ 4.50 $ 3.50 $ 2.00 $ 1.50 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 21,500 to 21,501 units? 2. What is the incremental cost incurred if the company increases production and sales from 21,500 to 21,501 units? 3. Assume that Kubin Company produced 21,500 units and expects to sell 21.200 of them. If a new customer unexpectedly emerges and expresses interest in buying the 300 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 21,500 units and expects to sell 21,200 of them. If a new customer unexpectedly emerges and expresses interest in buying the 300 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 Required 1 Required 2 Required 3 Required 4 What is the incremental manufacturing cost incurred if the company increases production from 21,500 to 21,501 units? (Round your answers to 2 decimal places.) Direct materials Direct labor Variable manufacturing overhead Total incremental cost $ 0.00 Required 1 Required 2 Required 3 Required 4 What is the incremental cost incurred if the company increases production and sales from 21,500 to 21,501 units? (Round your answers to 2 decimal places.) Direct materials Direct labor Variable manufacturing overhead Sales commissions Variable administrative expense Variable cost per unit sold $ 0.00 Required 1 Required 2 Required 3 Required 4 Assume that Kubin Company produced 21,500 units and expects to sell 21,200 of them. If a new customer unexpectedly emerges and expresses interest in buying the 300 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? Incremental manufacturing cost Required 1 Required 2 Required 3 Required 4 Assume that Kubin Company produced 21,500 units and expects to sell 21,200 of them. If a new customer unexpectedly emerges and expresses interest in buying the 300 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? (Round your answers to 2 decimal places.) Show less Sales commission Variable administrative expense Variable cost per unit sold $ 0.00

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

More Books

Students also viewed these Accounting questions