Question: Check my workCheck My Work button is now enabled1 Item 2 Item 2 3.33 points Item Skipped Kubin Companys relevant range of production is 23,000

Check my workCheck My Work button is now enabled1

Item 2

Item 2 3.33 points Item Skipped

Kubin Companys 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:

Amount per Unit
Direct materials $ 8.30
Direct labor $ 5.30
Variable manufacturing overhead $ 2.80
Fixed manufacturing overhead $ 6.30
Fixed selling expense $ 4.80
Fixed administrative expense $ 3.80
Sales commissions $ 2.30
Variable administrative expense $ 1.80

Required:

1. If 23,000 units are produced and sold, what is the variable cost per unit produced and sold?

2. If 27,500 units are produced and sold, what is the variable cost per unit produced and sold?

3. If 23,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

4. If 27,500 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

5. If 23,000 units are produced, what is the average fixed manufacturing cost per unit produced?

6. If 27,500 units are produced, what is the average fixed manufacturing cost per unit produced?

7. If 23,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

8. If 27,500 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!