Question
Kubin Companys relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as
Kubin Companys relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as follows:
Average Cost per Unit Direct materials $ 8.70
Direct labor $ 5.70
Variable manufacturing overhead $ 3.20
Fixed manufacturing overhead $ 6.70
Fixed selling expense $ 5.20
Fixed administrative expense $ 4.20
Sales commissions $ 2.70
Variable administrative expense $ 2.20
Required:
1. If 27,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 29,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 27,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 29,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 27,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 29,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 27,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 29,000 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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started