Question
Kubin Company's relevant range of production is 24,000 to 31,000 units. When it produces and sells 27,500 units, its average costs per unit are as
Kubin Company's relevant range of production is 24,000 to 31,000 units. When it produces and sells 27,500 units, its average costs per unit are as follows:
Average Cost per UnitDirect materials$8.40Direct labor$5.40Variable manufacturing overhead$2.90Fixed manufacturing overhead$6.40Fixed selling expense$4.90Fixed administrative expense$3.90Sales commissions$2.40Variable administrative expense$1.90
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 27,500 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 27,500 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 31,000 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 24,000 units?
(For all requirements, do not round intermediate calculations.)
Please help calculation as well
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