Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Chapter 5, Problem 14E
To determine
Explain the reasons why increase in unit cost occurred in the given condition.
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[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 14,000 to 20,500 units. When it produces and sells 17,250 units, its
average costs per unit are as follows:
Average Cost per
Unit
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
7.50
4.50
2.00
5.50
4.00
3.00
Sales commissions
1.50
Variable administrative expense
1.00
Requlred:
1. If 14,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 20,500 units are produced and sold, what is the varlable cost per unit produced and sold?
3. If 14,000 units are produced and sold, what is the total amount of varlable cost related to the units produced and sold?
4. If 20,500 units are produced and sold, what is the total amount of varlable cost related to the units produced and sold?
5. If 14,000 units are produced, what is the average fixed…
[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 19,000 to 20,000 units. When it produces and sells 19,500 units, its
average costs per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Average
Cost per
Unit
$7.90
$ 4.90
$2.40
$5.90
$4.40
$3.40
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 19,500 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 19,500 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 19,000 units?
(For all requirements, do not round intermediate calculations.)
1.…
[The following information applies to the questions displayed below.]
Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units,
its average costs per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Average
Cost Per
Unit
$6.20
$ 3.70
$ 1.60
$ 4.00
$ 3.20
$2.20
$ 1.20
$ 0.45
12. If 12,500 units are produced, what is the total manufacturing overhead cost incurred to support this level of production? What is this
total amount expressed on a per-unit basis?
Note: Round your "per unit" answer to 2 decimal places.
Total manufacturing overhead cost
Manufacturing overhead per unit
Chapter 5 Solutions
Principles of Cost Accounting
Ch. 5 - What are the two basic systems of cost accounting,...Ch. 5 - Following is a list of manufactured products. For...Ch. 5 - Give three examples of industries and companies...Ch. 5 - What is the primary difference between the two...Ch. 5 - What is the difference between the term unit cost...Ch. 5 - How do the two cost accounting systems differ in...Ch. 5 - What is the primary objective in accumulating...Ch. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - What would be the effect on the unit cost of...
Ch. 5 - What information is reflected on a production...Ch. 5 - What are the four main sections of a cost of...Ch. 5 - Prob. 13QCh. 5 - Prob. 14QCh. 5 - In determining the costs transferred to a third...Ch. 5 - Prob. 16QCh. 5 - Prob. 17QCh. 5 - Compute the equivalent production (unit output)...Ch. 5 - During the month, a company with no...Ch. 5 - Comacho Chemical Co. recorded costs for the month...Ch. 5 - Norwood Co. had 200 units in work in process at...Ch. 5 - Using the following data, determine which figures...Ch. 5 - The records of Burris Inc. reflect the following...Ch. 5 - The records of Stone Inc. reflect the following...Ch. 5 - Argo Manufacturing Co. had 500 units, three-fifths...Ch. 5 - AAA Appliances Inc. has two production...Ch. 5 - AAA Appliances Inc. has two production...Ch. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Chavez Concrete Inc. has two production...Ch. 5 - Chavez Concrete Inc. has two production...Ch. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Geneva Products Co. produces a latex paint and...Ch. 5 - Dublin Brewing Co. uses the process cost system....Ch. 5 - Kokomo Kayak Inc. uses the process cost system....Ch. 5 - Prob. 4PCh. 5 - Sifting, the second department in a...Ch. 5 - Forming, the second department in a...Ch. 5 - Premier Products Inc. has three departments and...Ch. 5 - Premier Products Inc. has three departments and...Ch. 5 - Aero Aluminum Inc. uses a process cost system. The...Ch. 5 - Aero Aluminum Inc. uses a process cost system. The...Ch. 5 - Prob. 11PCh. 5 - Petrini Products Co. has two departments: Mixing...Ch. 5 - Tanaka Manufacturing Co. uses the process cost...Ch. 5 - Syracuse Beverages Inc. has three plants that make...
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- [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 6.50 $ 4.00 $ 1.60 $ 4.00 $ 3.50 $ 2.20 $ 1.20 $ 0.45 8. If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.) X Answer is complete but not entirely correct. $ 0.00 X Average fixed manufacturing cost per unitarrow_forwardPlease don't give image formatarrow_forwardThe following information is available from the accounting records of EVA Corporation:Fixed cost per period is $4800. Sales volume for the last period was $19 360, and variable cost was $13 552. Capacity per period is a sales volume of $32 000.Draw a detailed break-even chart on a grid such as the one provided. Marks are awarded for determining the revenue and cost functions, correctness of plotted points and lines, correct labeling of axes, and overall neatness of the graph.arrow_forward
- Provide correct solutionarrow_forward[The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 23,000 to 27,500 units. When it produces and sells 25,250 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 8.30 $ 5.30 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 25,250 units? b. What is the total indirect manufacturing cost incurred to make 25,250 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 25,250 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? 3. Assume the…arrow_forwardGlisan Corporation's relevant range of activity is 4,300 units to 8,300 units. When it produces and sells 6,300 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,300 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,300 units? c. If 5,300 units are sold, what is the total amount of variable costs related to the units sold? d. If the selling price is $24.35 per unit, what is the contribution margin per unit sold? Note: Round "Per unit" answer to 2 decimal places. e. What incremental manufacturing cost will the company incur if it increases production from 6,300 to 6,301 units? Note: Round "Per unit" answer to 2 decimal places. a. Total…arrow_forward
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