Kubin Company's relevant range of production is 25,000 to 33,500 units. When it produces and sells 29,250 units, its average costs per unit are as follows: Average Cost per Unit $ 8.50 $ 5.50 $ 3.00 $ 6.50 $ 5.00 $ 4.00 $ 2.50 $ 2.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. If 25,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 33,500 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 25,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 33,500 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 25,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 33,500 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 25,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level production? 8. If 33,500 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this levele production? (Round per unit values to 2 decimal places.) Answer is complete but not entirely correct. 25,000 Units 33,500 Units 1. & 2. Variable cost per unit produced and sold $ 21.50 O s 21.50 $ 537,500 3. & 4. Total amount of variable cost related to units produced and sold 5. & 6. Average fixed manufacturing cost per unit produced 7. & 8. Total amount of fixed manufacturing overhead $ 720,250 7.61 5.68 $ 190,250 $ 190,280

Q: This includes all manufacturing costs that cannot be classified as direct materials or direct labor.…

A: From all of the above, the Period cost is not directly concerned with the production. The prime cost…

Q: Multiple choice question. total fixed manufacturing overhead cost total manufacturing overhead…

A: The total manufacturing costs of the product or job include variable and fixed cost. The variable…

Q: Which of the following does NOT form a part of Total cost? A. Production overheads B. Factory…

A: Total cost involves all the cost incurred in order to reach a particular level of output.

Q: All the following can be used as an allocation base, EXCEPT: а. direct labor cost b. direct machine…

A: Allocation Base : Allocation base is that the instrument by that the overhead price of the…

Q: T, F. Prime cost consists of Direct Materials and Factory Overhead.

A: Prime cost is a combination of direct attributes i.e primarily incurred for the product.

Q: how do I find total over- or underapplied fixed manufacturing overhead?

A: Overhead: Overhead refers to the costs, which are utilized in business activities, however cannot be…

Q: Formula for FIxed Overhead How do you find fixed overhead?  What is the formula?

A: Overheads refers to the total cost of indirect materials, indirect labour and indirect expenses.…

Q: How is predetermined overhead rate established? How is it used to apply overhead?

A:

Q: al factory overhead

A: Overapplied or underapplied overhead is the differnce between actual overhead and applied overhead.

Q: Why factory overhead is computed based on direct labor?

A: Refer Step 2 for explanation

Q: What is the standard variable overhead rate and standard fixed overhead rate?

A: The overhead rate is calculated by dividing total indirect costs (also known as overhead) for a…

Q: Give five examples of manufacturing overhead costs. Why are they considered indirect costs?

A: Definition: Manufacturing overhead costs: The costs which does not relate directly with the…

Q: Direct labor and manufacturing overhead often are combined into a single cost category termed…

A: Lets understand the basics. Costs are divided into several parts which are, (1) Prime cost (2)…

Q: Is manufacturing overhead cost given to tasks based on a precise determination of each job's…

A: Concept: Generally, overhead costs in the manufacturing industry are assigned based on a predefined…

Q: How do you calculate the predetermined overhead rate do you have an example

A: An allocation rate used to estimate the manufacturing costs is termed as predetermined overhead…

Q: Explain why the fixed manufacturing overhead cost per unit changes when there is a change in the…

A: Manufacturing overhead costs:  "The costs, which do not relate directly with the manufacturing of…

Q: how to allocate manufacturing overhead by department?

A: Manufacturing overhead costs: The costs, which do not relate openly with the manufacturing of…

Q: When used as the denominator in the calculation of an overhead rate, which of the following will…

A: Capacity or activity level helps to determine the maximum or ideal level at which production can be…

Q: n fixed overhead applied to work in process 3600

A: Standard fixed overhead applied is the standard direct hours available into standard fixed overhead…

Q: 18) In traditional approach, overheads are absorbed based on: a. All the options listed b. Direct…

A: In the traditional approach, overheads are allocated on the basis of various drivers like machine…

Q: Describe how a single plantwide overhead allocation rate is used.

A: Cost: It refers to the economic value incurred by a company to produce a product or a service.

Q: Explain why a manufacturer’s cost of supervising production might be a step-fixed cost.

A: Step-fixed costs: Step-fixed costs remain fixed over a wide range of activity but it jumps to a…

Q: [The following information applies to the questions displayed below.] Cane Company manufactures two…

A: Lets understand the basics.Fixed manufacturing overhead do not change with the change in sales…

Q: the manufactured overhea

A: Overhead represents the indirect expenses involved in the production process of the company.

Q: Describe the types of manufacturing overhead.

A: Manufacturing Expenses or Overhead are the indirect type of costs that a business incurs for a…

Q: Which of the following is not a manufacturing cost? * Manufacturing overhead O Direct materials O…

A: In cost accounting, There are many types of costs or expenses incurred for the production of the…

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.  

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.