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Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 12,000 to 16,000 units. When it produces
Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 12,000 to 16,000 units. When it produces and sells 14,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials. $ 7.30 Direct labor $ 4.30 Variable manufacturing overhead $ 1.80 Fixed manufacturing overhead $ 5.30 Fixed selling expense $ 3.80 Fixed administrative expense $ 2.80 Sales commissions Variable administrative expense $ 1.30 $ 0.80 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 14,000 to 14,001 units? 2. What is the incremental cost incurred if the company increases production and sales from 14,000 to 14,001 units? 3. Assume that Kubin Company produced 14,000 units and expects to sell 13,770 of them. If a new customer unexpectedly emerges and expresses interest in buying the 230 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 14,000 units and expects to sell 13,770 of them. If a new customer unexpectedly emerges and expresses interest in buying the 230 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. If 12,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 16,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 12,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 16,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 12,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 16,000 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 12,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 16,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production
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