Kubin Company's relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 units, its average costsper unit are as follows:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadFixed selling expenseFixed administrative expenseSales commissionsVariable administrative expenseAmount perUnit15454545 is issu$$$1.&2 Variable cost per unit produced and sold$$$$$8.105.102.606.104.603.60Required:1. If 21,000 units are produced and sold, what is the variable cost per unit produced and sold?2. If 25,000 units are produced and sold, what is the variable cost per unit produced and sold?3. If 21,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?2.101.604. If 25,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?5. If 21,000 units are produced, what is the average fixed manufacturing cost per unit produced?3.& 45.& 6.7.& 8. Total amount of fixed manufacturing overhead6. If 25,000 units are produced, what is the average fixed manufacturing cost per unit produced?7. If 21,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?8. If 25,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?(Round per unit values to 2 decimal places.)Total amount of variable cost related to units produced and soldAverage fixed manufacturing cost per unit produced21,000 Units 25.000 Units$ 19.50$409.500$6.68$ 140,3004

Variable cost is the cost which remains the same in unit but varies in total with the units of…

Answered: Company 3. Relevant range of production…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows Average Cost Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense per Unit $5.20 Multiple Choice $3.75 $1.65 $2.60 $0.50 $0.40 $1.50 $0.50 If 5,500 units are produced, the total amount of direct manufacturing cost incurred is closest to:
Q.11) Pak Cables SAOG makes four components P, Q, R and S for which costs in the forthcoming year are expected to be as follows: Product (code name) Production (Units) Unit Margin Costs: Direct Materials Direct Labour Variable production overheads P R S 2,000 4,000 8,000 6,000 Omani Rial Omani Rial Omani Rial Omani Rial 08 10 04 08 16 18 08 12 04 06 02 04 28 34 14 24 Directly attributable fixed costs per annum and committed fixed costs: Incurred as direct consequence of making P Incurred as direct consequence of making Q Incurred as direct consequence of making R Incurred as direct consequence of making S Other fixed costs (committed) Omani Rial 2,000 10,000 12,000 16,000 60,000 100,000 Directly attributable fixed costs are all items of cash expenditures that are incurred as a direct the product in house. A sub contractor has offered to supply units of P, Q, R and S for Omani Rial 24, Omani Rial 42, Omani 28 respectively. Required: A. Which of the components Pak Cables SAOG should make…
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product B $ 62.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $80.00 Required 1 Required 2 24.00 24.00 48.00 $ 32.00 Required 3 40% 18.00 25.40 43.40 $ 18.60 30% с $81.00 The company estimates it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin the company can earn per month if it makes optimal use of its 5,000 pounds of materials? Contribution margin per pound of the constraining resource 9.00 43.65…
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: 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 $7.30 $ 4.30 $ 1.80 $5.30 $ 3.80 $ 2.80 $ 1.30 $ 0.80 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 14,000 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 14,000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 16,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 12,000 units? (For all requirements, do not…
1. Providence Corporation produces a single product and has the following cost structure: Number of units produced each year Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense lanolevil subivibr The unit product cost under variable costing is: 7,000 mos i h $78 $89 $6 $3 $532,000 $574,000
8. Given the following data, calculate product cost per unit under variable costing. Direct labor $7 per unit Direct materials $1 per unit Overhead Total variable overhead $20,000 Total fixed overhead $90,000 Expected units to be produced 40,000 units A. $8 per unit B. $8.50 per unit C. $10.25 per unit D. $10.75 per unit E. $12 per unit
JSON-5313 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 X5 Z9 Selling price $ 72.00 $ 54.00 $ 62.00 Variable expenses: Direct materials 21.60 18.00 9.00 21.60 22.50 34.40 43.20 43.40 Other variable expenses Total variable expenses Contribution margin Contribution margin ratio 40.50 $13.50 $28.80 $18.60 40% 25% 30% JSON-5313 has enough demand to sell 700 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $3 per pound. The company will at most have 4,800 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-5313 can earn per month using its 4,800 pounds of direct materials optimally? O $ 10,800 O $ 13,020 O $ 23,820 O $ 26,320
A corporation's cost data is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense What is the amount of product costs, if 4,000 units are produced? Multiple Choice O O O O $57,200 $8,800 $44,400 $53,200 Cost per Cost per Unit Period $ 6.00 $ 3.35 $ 1.75 $ 1.00 $ 0.40 $ 8,800 $ 4,000
! Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 20,000 to 20,001 units? 2. What is the incremental cost incurred if the company increases production and sales from 20,000 to 20,001 units? 3. Assume that Kubin Company produced 20,000 units and expects to sell 19,800 of them. If a new customer unexpectedly emerges and expresses interest in buying the 200 extra units that have been produced by the company and that would…
Menk Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.80 Direct labor $ 3.80 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 20,200 Sales commissions $ 0.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 10,100 Required: a. If 5,220 units are sold, what is the variable cost per unit sold? Note: Round "Per unit" answer to 2 decimal places. b. If 5,220 units are sold, what is the total amount of variable costs related to the units sold? c. If 5,220 units are produced, what is the total amount of manufacturing overhead cost incurred? a. Variable cost per unit sold b. Total variable costs c. Total manufacturing overhead cost
How do I answer this question? Pt 2 Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.00 Direct labor $ 4.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 5.00 Fixed selling expense $ 3.50 Fixed administrative expense $ 2.50 Sales commissions $ 1.00 Variable administrative expense $ 0.50 Required: 4. If 22,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 18,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 22,000 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 22,000 units are produced, what is…

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