Question
In: Accounting
Kubin Company's relevant range of productions is 25,000 to 33,500. When it produces and sells 29,500...
Kubin Company's relevant range of productions is 25,000 to 33,500. When it produces and sells 29,500 units it average costs per unit are as follows:
| Amount per Unit | ||
| Direct materials | $ | 8.50 |
| Direct labor | $ | 5.50 |
| Variable manufacturing overhead | $ | 3.00 |
| Fixed manufacturing overhead | $ | 6.50 |
| Fixed selling expense | $ | 5.00 |
| Fixed administrative expense | $ | 4.00 |
| Sales commissions | $ | 2.50 |
| Variable administrative expense | $ | 2.00 |
1. If 25,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 33,500 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 25,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 33,500 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 25,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 33,500 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 25,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 33,500 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
Solutions
Expert Solution
1)
| Direct materials | $8.50 |
| Direct labor | 5.50 |
| Variable manufacturing overhead | 3.00 |
| Sales commissions | 2.50 |
| Variable administrative expense | 2.00 |
| Total variable cost per unit | $21.50 |
2)
| Direct materials | $8.50 |
| Direct labor | 5.50 |
| Variable manufacturing overhead | 3.00 |
| Sales commissions | 2.50 |
| Variable administrative expense | 2.00 |
| Total variable cost per unit | $21.50 |
3) Total amount of variable cost= Units produced*Variable cost per unit
= 25000*$21.50= $537500
4) Total amount of variable cost= Units produced*Variable cost per unit
= 33500*$21.50= $720250
5) Total fixed manufacturing overhead= $6.50*29500= $191750
Average fixed manufacturing cost per unit= Total fixed manufacturing overhead/Units produced
= $191750/25000= $7.67 per unit
6) Total fixed manufacturing overhead= $6.50*29500= $191750
Average fixed manufacturing cost per unit= Total fixed manufacturing overhead/Units produced
= $191750/33500= $5.72 per unit
7) Total fixed manufacturing overhead= $6.50*29500= $191750
8) Total fixed manufacturing overhead= $6.50*29500= $191750
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ekkarill92 answered 1 year agoRelated Solutions
Kubin Company’s relevant range of production is 25,000 to 33,500 units. When it produces and sells...
Kubin Company’s relevant range of production is 25,000 to 33,500
units. When it produces and sells 29,250 units, its average costs
per unit are as follows:
Average Cost per Unit
Direct materials
$
8.50
Direct labor
$
5.50
Variable manufacturing overhead
$
3.00
Fixed manufacturing overhead
$
6.50
Fixed selling expense
$
5.00
Fixed administrative expense
$
4.00
Sales commissions
$
2.50
Variable administrative expense
$
2.00
Required:
1. Assume the cost object is units of production:
a. What...
Kubin Company’s relevant range of production is 25,000 to 33,500 units. When it produces and sells...
Kubin Company’s relevant range of production is 25,000 to 33,500
units. When it produces and sells 29,250 units, its average costs
per unit are as follows:
Average Cost per Unit
Direct materials
$
8.50
Direct labor
$
5.50
Variable manufacturing
overhead
$
3.00
Fixed manufacturing
overhead
$
6.50
Fixed selling expense
$
5.00
Fixed administrative
expense
$
4.00
Sales commissions
$
2.50
Variable administrative
expense
$
2.00
Required:
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