Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 30,000 to 35,000 units. When it produces and sells 32,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials Direct labor $9.00 $6.00 $3.50 $7.00 Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $5.50 $4.50 $3.00 $2.50 Required: 1. If 30,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 35,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 30,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 35,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 30,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 35,000 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 30,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 35,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 30,000 to 35,000 units. When it produces and sells 32,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials Direct labor $9.00 $6.00 $3.50 $7.00 Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $5.50 $4.50 $3.00 $2.50 Required: 1. If 30,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 35,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 30,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 35,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 30,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 35,000 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 30,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 35,000 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
Section: Chapter Questions
Problem 1Q
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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.
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Required information
[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 30,000 to 35,000 units. When it produces and sells 32,500 units, its
average costs per unit are as follows:
Average
Cost per
Unit
Direct materials
$9.00
$6.00
$3.50
$7.00
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
$5.50
$4.50
$3.00
$2.50
Required:
1. If 30,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 35,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 30,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 35,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 30,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 35,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 30,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 35,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
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Transcribed Image Text:re Problems - 10% semester grade
Saved
Help
Save &
CI
Required information
[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 30,000 to 35,000 units. When it produces and sells 32,500 units, its
average costs per unit are as follows:
Average
Cost per
Unit
Direct materials
$9.00
$6.00
$3.50
$7.00
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
$5.50
$4.50
$3.00
$2.50
Required:
1. If 30,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 35,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 30,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 35,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 30,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 35,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 30,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 35,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
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Transcribed Image Text:Is the average fixed manufacturing cost per unit pro
7. If 30,000 units are produced, what is the total amount of fixed manufacturing overhead
8. If 35,000 units are produced, what is the total amount of fixed manufacturing overhead
(Round per unit values to 2 decimal places.)
30,000 Units 35,000 Units
1. & 2. Variable cost per unit produced and sold
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
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