Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 11,000 to 14,000 units. When it produces

Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Fixed manufacturing overhead Fixed administrative expense. Direct materials Direct labor Variable manufacturing overhead Fixed selling expense Sales commissions Average Cost per Unit $ 7.20 $ 4.20 $ 1.70 $ 5.20 $ 3.70 $ 2.70 $ 1.20 Variable administrative expense $ 0.70 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 12,500 to 12,501 units? 2. What is the incremental cost incurred if the company increases production and sales from 12,500 to 12,501 units? 3. Assume that Kubin Company produced 12,500 units and expects to sell 12,280 of them. If a new customer unexpectedly emerges and expresses interest in buying the 220 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 12,500 units and expects to sell 12,280 of them. If a new customer unexpectedly emerges and expresses interest in buying the 220 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? Required 1 Required 2 Required 3 Required 4 What is the incremental manufacturing cost incurred if the company increases production from 12,500 to 12,501 units? (Round your answer to 2 decimal places.). Total incremental manufacturing cost Required 1 Required 2 Required 3 Required 4 What is the incremental cost incurred if the company increases production and sales from 12,500 to 12,501 units? (Round your answer to 2 decimal places.) Total incremental cost ces Required 1 Required 21 Required Required 4 Assume that Kubin Company produced 12,500 units and expects to sell 12,280 of them. If a new customer unexpectedly emerges and expresses interest in buying the 220 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? Incremental manufacturing cost Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Requires 4 Assume that Kubin Company produced 12,500 units and expects to sell 12,280 of them. If a new customer unexpectedly emerges and expresses interest in buying the 220 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? (Round your answer to 2 decimal places.) Total incremental selling and administrative cost per unit Show less A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Basic For Beginners

Authors: Kavishankar Panchtilak

1st Edition

979-8860644588

More Books

Students also viewed these Accounting questions

Question

7 What evidence of mediation do you see from your tasks?

Answered: 1 week ago

Question

Apply your own composing style to personalize your messages.

Answered: 1 week ago

Question

Format memos and e-mail properly.

Answered: 1 week ago