Kubin Companyâs relevant range of production is 24,000 to 31,000units. When it produces and sells 27,500 units, its average costsper unit are as follows:
Amount per Unit Direct materials $ 8.40 Direct labor $ 5.40 Variable manufacturingoverhead $ 2.90 Fixed manufacturingoverhead $ 7.10 Fixed selling expense $ 4.90 Fixed administrativeexpense $ 3.90 Sales commissions $ 2.40 Variable administrativeexpense $ 1.90
Required:
1. If 24,000 units are produced and sold, what is the variablecost per unit produced and sold?
2. If 31,000 units are produced and sold, what is the variablecost per unit produced and sold?
3. If 24,000 units are produced and sold, what is the totalamount of variable cost related to the units produced and sold?
4. If 31,000 units are produced and sold, what is the totalamount of variable cost related to the units produced and sold?
5. If 24,000 units are produced, what is the average fixedmanufacturing cost per unit produced?
6. If 31,000 units are produced, what is the average fixedmanufacturing cost per unit produced?
7. If 24,000 units are produced, what is the total amount offixed manufacturing overhead incurred to support this level ofproduction?
8. If 31,000 units are produced, what is the total amount offixed manufacturing overhead incurred to support this level ofproduction?
(Round per unit values to 2 decimalplaces.)
Kubin Companyâs relevant range of production is 24,000 to 31,000units. When it produces and sells 27,500 units, its average costsper unit are as follows:
| Amount per Unit | ||
| Direct materials | $ | 8.40 |
| Direct labor | $ | 5.40 |
| Variable manufacturingoverhead | $ | 2.90 |
| Fixed manufacturingoverhead | $ | 7.10 |
| Fixed selling expense | $ | 4.90 |
| Fixed administrativeexpense | $ | 3.90 |
| Sales commissions | $ | 2.40 |
| Variable administrativeexpense | $ | 1.90 |
Required:
1. If 24,000 units are produced and sold, what is the variablecost per unit produced and sold?
2. If 31,000 units are produced and sold, what is the variablecost per unit produced and sold?
3. If 24,000 units are produced and sold, what is the totalamount of variable cost related to the units produced and sold?
4. If 31,000 units are produced and sold, what is the totalamount of variable cost related to the units produced and sold?
5. If 24,000 units are produced, what is the average fixedmanufacturing cost per unit produced?
6. If 31,000 units are produced, what is the average fixedmanufacturing cost per unit produced?
7. If 24,000 units are produced, what is the total amount offixed manufacturing overhead incurred to support this level ofproduction?
8. If 31,000 units are produced, what is the total amount offixed manufacturing overhead incurred to support this level ofproduction?
(Round per unit values to 2 decimalplaces.)
Related questions
Kubin Companyâs relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 units, its average costs per unit are as follows:
| Amount per Unit | ||
| Direct materials | $ | 8.10 |
| Direct labor | $ | 5.10 |
| Variable manufacturing overhead | $ | 2.60 |
| Fixed manufacturing overhead | $ | 6.10 |
| Fixed selling expense | $ | 4.60 |
| Fixed administrative expense | $ | 3.60 |
| Sales commissions | $ | 2.10 |
| Variable administrative expense | $ | 1.60 |
Required:
1. If 21,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 25,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 21,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 25,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 21,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 25,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 21,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 25,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
(Round per unit values to 2 decimal places.)
| Martinez Companyâs relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows: |
| Amount Per Unit | |||
| Direct materials | $ | 6.00 | |
| Direct labor | $ | 3.50 | |
| Variable manufacturing overhead | $ | 1.50 | |
| Fixed manufacturing overhead | $ | 4.00 | |
| Fixed selling expense | $ | 3.00 | |
| Fixed administrative expense | $ | 2.00 | |
| Sales commissions | $ | 1.00 | |
| Variable administrative expense | $ | 0.50 | |
| Required: | |
| 1. | For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? |
| 2. | For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? |
| 3. | If 8,000 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.) |
| 4. | If 12,500 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.) |
| 5. | If 8,000 units are sold, what is the total amount of variable costs related to the units sold? |
| 6. | If 12,500 units are sold, what is the total amount of variable costs related to the units sold? |
| 7. | If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced? |
| 8. | If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.) |
| 9. | If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? |
| 10. | If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? |
| 11-a. | If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? |
| 11-b. | If 8,000 units are produced, What is this total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.) |
| 12-a. | If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? |
| 12-b. | If 12,500 units are produced, what is this total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.) |
| 13. | If the selling price is $22 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.) |
| Required: |
| 14-a. | If 11,000 units are produced, what are the total amounts of direct manufacturing costs incurred to support this level of production? |
| 14-b. | If 11,000 units are produced, what are the total amounts of indirect manufacturing costs incurred to support this level of production? |
| 15. | What total incremental cost will Martinez incur if it increases production from 10,000 to 10,001 units? |
