Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 25,000 to 33,500 units. When it produces anc average

[The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 25,000 to 33,500 units. When it produces anc average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $8.50 $ 5.50 $ 3.00 $ 6.50 $ 5.00 $ 4.00 $ 2.50 $ 2.00 Required: . What is the incremental manufacturing cost incurred if the company increases production from 29,2 2. What is the incremental cost incurred if the company increases production and sales from 29,250 1 B. Assume that Kubin Company produced 29,250 units and expects to sell 28,900 of them. If a new c and expresses interest in buying the 350 extra units that have been produced by the company and t unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the custom- 4. Assume that Kubin Company produced 29,250 units and expects to sell 28,900 of them. If a new c and expresses interest in buying the 350 extra units that have been produced by the company and t unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the incremental manufacturing cost incurred if the company increases production from 29,250 to (Round your answer to 2 decimal places.) Sales commissions Variable administrative expense $ 2.50 $ 2.00 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 29,250 to 29,251 units? 2. What is the incremental cost incurred if the company increases production and sales from 29,250 to 29,251 units? 3. Assume that Kubin Company produced 29,250 units and expects to sell 28,900 of them. If a new customer unexpectedly er and expresses interest in buying the 350 extra units that have been produced by the company and that would otherwise rema unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 29,250 units and expects to sell 28,900 of them. If a new customer unexpectedly er and expresses interest in buying the 350 extra units that have been produced by the company and that would otherwise remai unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer

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

Financial Information Analysis 2e

Authors: Philip ORegan

2nd Edition

0470865725, 978-0470865729

More Books

Students also viewed these Accounting questions

Question

3. An overview of the key behaviors is presented.

Answered: 1 week ago

Question

2. The model is credible to the trainees.

Answered: 1 week ago