Question: Required information Cost Classifications (Algo) Skip to question [ The following information applies to the questions displayed below. ] Kubin Companys relevant range of production
Required information
Cost Classifications (Algo)
Skip to question
[The following information applies to the questions displayed below.]
Kubin Companys 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:
| Average Cost per Unit | |
|---|---|
| Direct materials | $ 7.90 |
| Direct labor | $ 4.90 |
| Variable manufacturing overhead | $ 2.40 |
| Fixed manufacturing overhead | $ 5.90 |
| Fixed selling expense | $ 4.40 |
| Fixed administrative expense | $ 3.40 |
| Sales commissions | $ 1.90 |
| Variable administrative expense | $ 1.40 |
Exercise 1-9 (Algo) Fixed, Variable, and Mixed Costs [LO1-4]
Required:
- If 19,000 units are produced and sold, what is the variable cost per unit produced and sold?
- If 20,000 units are produced and sold, what is the variable cost per unit produced and sold?
- If 19,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
- If 20,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
- If 19,000 units are produced, what is the average fixed manufacturing cost per unit produced?
- If 20,000 units are produced, what is the average fixed manufacturing cost per unit produced?
- If 19,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
- If 20,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
Note: Round per unit values to 2 decimal places.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
