Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average cost 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 Commission Variable administrative expense A) If 18,000 units are produced and sold, what is the variable cost per unit produced and sold? B) If 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sod? C) If 18,000 units are produced, what are the fixed manufacturing cost per unit produced? D) If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? E) What is the total manufacturing cost (product cost) of producing 18,000 units?

Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average cost 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 Commission Variable administrative expense A) If 18,000 units are produced and sold, what is the variable cost per unit produced and sold? B) If 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sod? C) If 18,000 units are produced, what are the fixed manufacturing cost per unit produced? D) If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? E) What is the total manufacturing cost (product cost) of producing 18,000 units?

Name: Kubin Company's relevant range of production is 18,000 to 22,000 unit
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Description: Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells20,000 units, its average cost per unit are as follows:Average CostPer Unit$7.00$4.00$1.50$5.00$3.50$2.50$1.00$0.50Direct materialsDirect laborVariable

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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Suppose that Patron Company sells a product for $24. Unit costs are as follows: Direct materials $4.98 Direct labor 2.58 Variable factory overhead 1.00 Variable selling and administrative expense 2.00 Total fixed factory overhead is $30,000 per year, and total fixed selling and administrative expense is $11,664. Required: 1. Calculate the variable cost per unit and the contribution margin per unit. 2. Calculate the contribution margin ratio and the variable cost ratio. 3. Calculate the break-even units. 4. Prepare a contribution margin income statement at the break-even number of units. Enter all amounts as positive numbers.
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