Required information Cost Classifications (Algo) [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 1,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Average Cost per Unit $ 7.20 $4.20 $ 1.70 $ 5.20 $ 3.70 $ 2.70 $ 1.20 $ 0.70 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Exercise 1-7 (Algo) Direct and Indirect Costs [LO1-1] Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 12,500 units?
Required information Cost Classifications (Algo) [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 1,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Average Cost per Unit $ 7.20 $4.20 $ 1.70 $ 5.20 $ 3.70 $ 2.70 $ 1.20 $ 0.70 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Exercise 1-7 (Algo) Direct and Indirect Costs [LO1-1] Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 12,500 units?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
Cost Classifications (Algo)
[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 1,000 to 14,000 units. When it produces and sells 12,500 units, its
average costs per unit are as follows:
Average Cost
per Unit
$ 7.20
$4.20
$ 1.70
$ 5.20
$ 3.70
$ 2.70
$ 1.20
$ 0.70
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Exercise 1-7 (Algo) Direct and Indirect Costs [LO1-1]
Required:
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 12,500 units?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5826846c-be3c-4463-b15f-db7578a170b5%2F68e4cac3-edac-4af2-853b-0ace596938da%2Fs9s21b5.jpeg&w=3840&q=75)
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 1,000 to 14,000 units. When it produces and sells 12,500 units, its
average costs per unit are as follows:
Average Cost
per Unit
$ 7.20
$4.20
$ 1.70
$ 5.20
$ 3.70
$ 2.70
$ 1.20
$ 0.70
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Exercise 1-7 (Algo) Direct and Indirect Costs [LO1-1]
Required:
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 12,500 units?
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