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)

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[The following information applies to the questions displayed below.]

Kubin Companys relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its average costs per unit are as follows:

Average Cost per Unit
Direct materials $ 7.60
Direct labor $ 4.60
Variable manufacturing overhead $ 2.10
Fixed manufacturing overhead $ 5.60
Fixed selling expense $ 4.10
Fixed administrative expense $ 3.10
Sales commissions $ 1.60
Variable administrative expense $ 1.10

Exercise 1-9 (Algo) Fixed, Variable, and Mixed Costs [LO1-4]

Required:

  1. If 15,000 units are produced and sold, what is the variable cost per unit produced and sold?
  2. If 19,000 units are produced and sold, what is the variable cost per unit produced and sold?
  3. If 15,000 units are produced and sold, what is the total variable cost related to the units produced and sold?
  4. If 19,000 units are produced and sold, what is the total variable cost related to the units produced and sold?
  5. If 15,000 units are produced, what is the average fixed manufacturing cost per unit produced?
  6. If 19,000 units are produced, what is the average fixed manufacturing cost per unit produced?
  7. If 15,000 units are produced, what is the total fixed manufacturing overhead incurred to support this level of production?
  8. If 19,000 units are produced, what is the total fixed manufacturing overhead incurred to support this level of production?

Note: Round per unit values to 2 decimal places.

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