Required information Cost Classifications (Algo) [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.80 Direct labor $ 5.80 Variable manufacturing overhead $ 3.30 Fixed manufacturing overhead $ 6.80 Fixed selling expense $ 5.30 Fixed administrative expense $ 4.30 Sales commissions $ 2.80 Variable administrative expense $ 2.30 Exercise 1-10 (Algo) Differential Costs and Sunk Costs [LO1-5] Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 29,750 to 29,751 units? 2. What is the incremental cost incurred if the company increases production and sales from 29,750 to 29,751 units? 3. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges and expresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges and expresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? Complete this question by entering your answers in the tabs below. Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 29,750 to 29,751 units? 2. What is the incremental cost incurred if the company increases production and sales from 29,750 to 29,751 units? 3. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges and expresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges and expresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the incremental manufacturing cost incurred if the company increases production from 29,750 to 29,751 units? (Round your answer to 2 decimal places.) Total incremental manufacturing cost

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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Question
Required information
Cost Classifications (Algo)
[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its
average costs per unit are as follows:
Average Cost
per Unit
Direct materials
$ 8.80
Direct labor
$ 5.80
Variable manufacturing overhead
$ 3.30
Fixed manufacturing overhead
$ 6.80
Fixed selling expense
$ 5.30
Fixed administrative expense
$ 4.30
Sales commissions
$ 2.80
Variable administrative expense
$ 2.30
Exercise 1-10 (Algo) Differential Costs and Sunk Costs [LO1-5]
Required:
1. What is the incremental manufacturing cost incurred if the company increases production from 29,750 to 29,751 units?
2. What is the incremental cost incurred if the company increases production and sales from 29,750 to 29,751 units?
3. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges
and expresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain
unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer?
4. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges
and expresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain
unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer?
Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Required information Cost Classifications (Algo) [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.80 Direct labor $ 5.80 Variable manufacturing overhead $ 3.30 Fixed manufacturing overhead $ 6.80 Fixed selling expense $ 5.30 Fixed administrative expense $ 4.30 Sales commissions $ 2.80 Variable administrative expense $ 2.30 Exercise 1-10 (Algo) Differential Costs and Sunk Costs [LO1-5] Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 29,750 to 29,751 units? 2. What is the incremental cost incurred if the company increases production and sales from 29,750 to 29,751 units? 3. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges and expresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges and expresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? Complete this question by entering your answers in the tabs below.
Required:
1. What is the incremental manufacturing cost incurred if the company increases production from 29,750 to 29,751 units?
2. What is the incremental cost incurred if the company increases production and sales from 29,750 to 29,751 units?
3. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges
and expresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain
unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer?
4. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges
and expresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain
unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3 Required 4
What is the incremental manufacturing cost incurred if the company increases production from 29,750 to 29,751 units?
(Round your answer to 2 decimal places.)
Total incremental manufacturing cost
<Required 1
Required 2 >
Transcribed Image Text:Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 29,750 to 29,751 units? 2. What is the incremental cost incurred if the company increases production and sales from 29,750 to 29,751 units? 3. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges and expresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges and expresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the incremental manufacturing cost incurred if the company increases production from 29,750 to 29,751 units? (Round your answer to 2 decimal places.) Total incremental manufacturing cost <Required 1 Required 2 >
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