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Kubin Companys 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 Companys 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:
Amount per Unit | ||
Direct materials | $ | 8.40 |
Direct labor | $ | 5.40 |
Variable manufacturing overhead | $ | 2.90 |
Fixed manufacturing overhead | $ | 7.10 |
Fixed selling expense | $ | 4.90 |
Fixed administrative expense | $ | 3.90 |
Sales commissions | $ | 2.40 |
Variable administrative expense | $ | 1.90 |
Required:
1. If 24,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 31,000 units are produced and sold, what is the variable cost per unit produced and sold?
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