Question: Cost Classifications ( Static ) Skip to question [ The following information applies to the questions displayed below. ] Kubin Company s relevant range of

Cost Classifications (Static)
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[The following information applies to the questions displayed below.]
Kubin Companys 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 UnitDirect materials$ 7.00Direct labor$ 4.00Variable manufacturing overhead$ 1.50Fixed manufacturing overhead$ 5.00Fixed selling expense$ 3.50Fixed administrative expense$ 2.50Sales commissions$ 1.00Variable administrative expense$ 0.50
Exercise 1-8(Static) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4]
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 20,000 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 22,000 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 18,000 units?
Note: For all requirements, do not round intermediate calculations.

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