Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information Cost Classifications (Algo) Skip to question [ The following information applies to the questions displayed below. ] Kubin Companys relevant range of production
Required information
Cost Classifications (Algo)
Skip to question
[The following information applies to the questions displayed below.]
Kubin Companys relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its average costs per unit are as follows:
Average Cost per Unit | |
---|---|
Direct materials | $ 7.60 |
Direct labor | $ 4.60 |
Variable manufacturing overhead | $ 2.10 |
Fixed manufacturing overhead | $ 5.60 |
Fixed selling expense | $ 4.10 |
Fixed administrative expense | $ 3.10 |
Sales commissions | $ 1.60 |
Variable administrative expense | $ 1.10 |
Exercise 1-9 (Algo) Fixed, Variable, and Mixed Costs [LO1-4]
Required:
- If 15,000 units are produced and sold, what is the variable cost per unit produced and sold?
- If 19,000 units are produced and sold, what is the variable cost per unit produced and sold?
- If 15,000 units are produced and sold, what is the total variable cost related to the units produced and sold?
- If 19,000 units are produced and sold, what is the total variable cost related to the units produced and sold?
- If 15,000 units are produced, what is the average fixed manufacturing cost per unit produced?
- If 19,000 units are produced, what is the average fixed manufacturing cost per unit produced?
- If 15,000 units are produced, what is the total fixed manufacturing overhead incurred to support this level of production?
- If 19,000 units are produced, what is the total fixed manufacturing overhead incurred to support this level of production?
Note: 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