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: 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 $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Required: 1. If 18,000/22,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 18,000/22,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 3. If 18,000/22,000 units are produced, what is the average fixed manufacturing cost per unit produced? 4. If 18,000/22,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
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: 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 $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Required: 1. If 18,000/22,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 18,000/22,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 3. If 18,000/22,000 units are produced, what is the average fixed manufacturing cost per unit produced? 4. If 18,000/22,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text: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:
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
$ 7.00
$ 4.00
$ 1.50
$ 5.00
$ 3.50
$ 2.50
$ 1.00
$ 0.50
Required:
1. If 18,000/22,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 18,000/22,000 units are produced and sold, what is the total amount of variable cost related to
the units produced and sold?
3. If 18,000/22,000 units are produced, what is the average fixed manufacturing cost per unit
produced?
4. If 18,000/22,000 units are produced, what is the total amount of fixed manufacturing overhead
incurred to support this level of production?
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