Question
Kubin Company's relevant range of production is 30,000 to 35,000 units. When it produces and sells 32,500 units, its average costs per unit are as
Kubin Company's relevant range of production is 30,000 to 35,000 units. When it produces and sells 32,500 units, its average costs per unit are as follows:
Amount per UnitDirect materials$9.00Direct labor$6.00Variable manufacturing overhead$3.50Fixed manufacturing overhead$7.00Fixed selling expense$5.50Fixed administrative expense$4.50Sales commissions$3.00Variable administrative expense$2.50
Required:
1. If 30,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 35,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 30,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 35,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 30,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 35,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 30,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 35,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
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