1. If 10,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 12,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 10,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
Kubin Company’s relevant range of production is 10,000 to 12,000 units. When it produces and sells 11,000 units, its average costs per unit are as follows:
| Average Cost per Unit | |
|---|---|
| Direct materials | $ 7.10 |
| Direct labor | $ 4.10 |
| Variable manufacturing |
$ 1.60 |
| Fixed manufacturing overhead | $ 5.10 |
| Fixed selling expense | $ 3.60 |
| Fixed administrative expense | $ 2.60 |
| Sales commissions | $ 1.10 |
| Variable administrative expense | $ 0.60 |
Exercise 1-9 (Algo) Fixed, Variable, and Mixed Costs [LO1-4]
Required:
1. If 10,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 12,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 10,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 12,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 10,000 units are produced, what is the average fixed
6. If 12,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 10,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 12,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
10,000 Units12,000 Units
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
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