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Saved Help Save & Exit Submit Kubin Company's relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units,
Saved Help Save & Exit Submit Kubin Company's relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.70 Direct labor $ 5.70 Variable manufacturing overhead $ 3.20 Fixed manufacturing overhead $ 6.70 Fixed selling expense $ 5.20 Fixed administrative expense $ 4.20 Sales commissions $ 2.70 Variable administrative expense $ 2.20 Required: 1. If 27,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 29,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 27,000 units are produced and sold, what is the total variable cost related to the units produced and sold? 4. If 29,000 units are produced and sold, what is the total variable cost related to the units produced and sold? 5. If 27,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 29,000 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 27,000 units are produced, what is the total fixed manufacturing overhead incurred to support this level of production? 8. If 29,000 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. Kubin Company's relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.70 Direct labor $ 5.70 Variable manufacturing overhead $ 3.20 Fixed manufacturing overhead $ 6.70 Fixed selling expense $ 5.20 Fixed administrative expense $ 4.20 Sales commissions $ 2.70 Variable administrative expense $ 2.20 Required: 1. For financial accounting purposes, what is the total product cost incurred to make 28,000 units? 2. For financial accounting purposes, what is the total period cost incurred to sell 28,000 units? 3. For financial accounting purposes, what is the total product cost incurred to make 29,000 units? 4. For financial accounting purposes, what is the total period cost incurred to sell 27,000 units? Kubin Company's relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as follows: Average Cost per Unit $ 8.70 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $ 5.70 $ 3.20 $ 6.70 $ 5.20 $4.20 $ 2.70 $2.20 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 28,000 units? b. What is the total indirect manufacturing cost incurred to make 28,000 units? 2. Assume the cost object is the Manufacturing Department and its total output is 28,000 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? 3. Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $117,600 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives' compensation. a. When the company sells 28,000 units, what is the total direct selling expense readily traceable to individual sales Saved Help Save & Exit Submit The following information applies to the questions displayed below.) Kubin Company's relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions $ 8.70 $ 5.70 $ 3.20 $ 6.70 $ 5.20 $ 4.20 $ 2.70 Variable administrative expense $ 2.20 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 28,000 to 28,001 units? 2. What is the incremental cost incurred if the company increases production and sales from 28,000 to 28,001 units? 3. Assume Kubin Company produced 28,000 units and expects to sell 27,630 of them. If a new customer unexpectedly emerges and expresses interest in buying the 370 extra units that have been produced by the company and would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume Kubin Company produced 28,000 units and expects to sell 27,630 of them. If a new customer unexpectedly emerges and expresses interest in buying the 370 extra units that have been produced by the company and would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer?
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