Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 24,000 to 31,000 units. When it produces and sells 27,500 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 Amount per Unit $8.40 $5.40 $2.90 $6.40 $ 4.90 $3.90 $ 2.40 $1.90 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 27.500 to 27.501 units? 2. What is the incremental cost incurred if the company increases production and sales from 27,500 to 27.501 units? 3. Assume that Kubin Company produced 27.500 units and expects to sell 27.160 of them. If a new customer unexpectedly emerges and expresses interest in buying the 340 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 27.500 units and expects to sell 27,160 of them. If a new customer unexpectedly emerges and expresses interest in buying the 340 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? Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 27,500 to 27,501 units? 2. What is the incremental cost incurred if the company increases production and sales from 27,500 to 27,501 units? 3. Assume that Kubin Company produced 27,500 units and expects to sell 27,160 of them. If a new customer unexpected and expresses interest in buying the 340 extra units that have been produced by the company and that would otherwise unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer 4. Assume that Kubin Company produced 27.500 units and expects to sell 27,160 of them. If a new customer unexpected and expresses interest in buying the 340 extra units that have been produced by the company and that would otherwise 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 Required 2 Required 3 Required 4 What is the incremental manufacturing cost incurred if the company increases production from 27,500 to 27,501 units? (Round your answers to 2 decimal places.) Direct materials Direct labor Variable manufacturing overhead Total incremental cost Required 2 > Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 27,500 to 27.501 units? 2. What is the incremental cost incurred if the company increases production and sales from 27.500 to 27,501 units? 3. Assume that Kubin Company produced 27,500 units and expects to sell 27,160 of them. and expresses interest in buying the 340 extra units that have been produced by the company and that would otherwise unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 27.500 units and expects to sell 27160 of them. If a new customer unexpected and expresses interest in buying the 340 extra units that have been produced by the company and that would otherwise 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 Required 2 Required 3 Required 4 What is the incremental cost incurred if the company increases production and sales from 27.500 to 27.501 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. What is the incremental manufacturing cost incurred if the company increases production from 27.500 to 27,501 units? 2. What is the incremental cost incurred if the company increases production and sales from 27,500 to 27,501 units? 3. Assume that Kubin Company produced 27,500 units and expects to sell 27,160 of them. If a new customer unexpectedly en and expresses interest in buying the 340 extra units that have been produced by the company and that would otherwise rema unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 27.500 units and expects to sell 27,160 of them. If a new customer unexpectedly em and expresses interest in buying the 340 extra units that have been produced by the company and that would otherwise rema unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? Complete this question by enterias your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assume that Kubin Company produced 27.500 units and expects to sell 27.160 of them. If a new customer unexpectedly emerges and expresses interest in buying the 340 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 Reged 2 Required 4 > 3152 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 27.500 to 27.501 units? 2. What is the incremental cost incurred if the company increases production and sales from 27.500 to 27,501 units? 3. Assume that Kubin Company produced 27.500 units and expects to sell 27.160 of them. If a new customer unexpectedly emerges and expresses interest in buying the 340 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 27.500 units and expects to sell 27,160 of them. If a new customer unexpectedly emerges and expresses interest in buying the 340 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? se units to Complete this question by entering your answers in the tabs belu Required 1 Required 2 Required 3 Assume that Kubin Company produced 27.500 units and expects to sell 27,160 of them. If a new customer unexpectedly emerges and expresses interest in buying the 340 tra 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.) Commission Variable administrative expense Costes (Required

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

Corporate Financial Reporting And Analysis

Authors: David Young, Jacob Cohen

3rd Edition

1118470559, 9781118470558

More Books

Students also viewed these Accounting questions

Question

Why do you think most employers opt for the home-based salary plan?

Answered: 1 week ago