Required information

Skip to question

[The following information applies to the questions displayed below.]

Kubin Companys relevant range of production is 22,000 to 27,000 units. When it produces and sells 24,500 units, its average costs per unit are as follows:

Average Cost per UnitDirect materials$ 8.20Direct labor$ 5.20Variable manufacturing overhead$ 2.70Fixed manufacturing overhead$ 6.20Fixed selling expense$ 4.70Fixed administrative expense$ 3.70Sales commissions$ 2.20Variable administrative expense$ 1.70

Required:

1. If 22,000 units are produced and sold, what is the variable cost per unit produced and sold?

2. If 27,000 units are produced and sold, what is the variable cost per unit produced and sold?

3. If 22,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

4. If 27,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

5. If 22,000 units are produced, what is the average fixed manufacturing cost per unit produced?

6. If 27,000 units are produced, what is the average fixed manufacturing cost per unit produced?

7. If 22,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

8. If 27,000 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.)

1. and 2. Variable cost per unit produced and sold

3. and 4. Total amount of variable cost related to units produced and sold

5. and 6. Average fixed manufacturing cost per unit produced

7. and 8. Total amount of fixed manufacturing overhead