Refer to the data given in Exercise 1-7. Answer all questions independently.
In exercise 1-7 given data,
Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows:
_______________________________________________ Average Cost per Unit
Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . $7.00
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.00
Variable manufacturing overhead . . . . . . . . . . . $1.50
Fixed manufacturing overhead . . . . . . . . . . . . . $5.00
Fixed selling expense . . . . . . . . . . . . . . . . . . . . $3.50
Fixed administrative expense . . . . . . . . . . . . . . $2.50
Sales commissions . . . . . . . . . . . . . . . . . . . . . . $1.00
Variable administrative expense . . . . . . . . . . . $0.50
Required:
1. If 18,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 22,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 22,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 18,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 22,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 22,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?