Question
In: Accounting
Kubin Company’s relevant range of production is 23,000 to 27,500 units. When it produces and sells...
Kubin Company’s relevant range of production is 23,000 to 27,500 units. When it produces and sells 25,250 units, its average costs per unit are as follows:
| Average Cost per Unit | ||
| Direct materials | $ | 8.30 |
| Direct labor | $ | 5.30 |
| Variable manufacturing overhead | $ | 2.80 |
| Fixed manufacturing overhead | $ | 6.30 |
| Fixed selling expense | $ | 4.80 |
| Fixed administrative expense | $ | 3.80 |
| Sales commissions | $ | 2.30 |
| Variable administrative expense | $ | 1.80 |
Required:
1. If 23,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 27,500 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 23,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 27,500 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 23,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 27,500 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 23,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 27,500 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
Solutions
Expert Solution
Answer
| Requirement | Answer | Explanation |
| 1 | $ 20.50 | Variable Cost per unit is same irrespective of units |
| 2 | $ 20.50 | Variable Cost per unit is same irrespective of units |
| 3 | $ 471,500.00 | $ 20.50 * 23,000 |
| 4 | $ 563,750.00 | $ 20.50 * 27,500 |
| 5 | $ 16.36 | $ 376,225/23000 |
| 6 | $ 13.68 | $ 376,225/27500 |
| 7 | $ 376,225 | Total Fixed Costs remain same in totality |
| 8 | $ 376,225 | Total Fixed Costs remain same in totality |
Calculations:
Variable Costs are measured on per unit basis. Fixed costs are measured on total basis.
| Direct materials | $ 8.30 |
| Direct labor | $ 5.30 |
| Variable manufacturing overhead | $ 2.80 |
| Sales commissions | $ 2.30 |
| Variable administrative expense | $ 1.80 |
| Variable Cost per unit | $ 20.50 |
| Fixed manufacturing overhead | $ 6.30 |
| Fixed selling expense | $ 4.80 |
| Fixed administrative expense | $ 3.80 |
| Fixed manufacturing Cost per Unit | $ 14.90 |
| Units | 25,250 |
| Total Fixed Costs | $ 376,225 |
In case of any doubt or clarification, you're welcome to come back via comments.
ekkarill92 answered 1 week agoRelated Solutions
Kubin Company’s relevant range of production is 23,000 to 27,500 units. When it produces and sells...
Kubin Company’s relevant range of production is 23,000 to 27,500
units. When it produces and sells 25,250 units, its average costs
per unit are as follows:
Average Cost per Unit
Direct materials
$
8.30
Direct labor
$
5.30
Variable manufacturing
overhead
$
2.80
Fixed manufacturing
overhead
$
6.30
Fixed selling expense
$
4.80
Fixed administrative
expense
$
3.80
Sales commissions
$
2.30
Variable administrative
expense
$
1.80
Required:
1. Assume the cost object is units of production:
a. What...
Kubin Company’s relevant range of production is 23,000 to 27,500 units. When it produces and sells...
Kubin Company’s relevant range of production is 23,000 to 27,500
units. When it produces and sells 25,250 units, its average costs
per unit are as follows:
Average Cost per Unit
Direct materials
$
8.30
Direct labor
$
5.30
Variable manufacturing overhead
$
2.80
Fixed manufacturing overhead
$
6.30
Fixed selling expense
$
4.80
Fixed administrative expense
$
3.80
Sales commissions
$
2.30
Variable administrative expense
$
1.80
Required:
1. For financial accounting purposes, what is the total amount
of...
Kubin Company’s relevant range of production is 23,000 to 27,500 units. When it produces and sells...
Kubin Company’s relevant range of production is 23,000 to 27,500
units. When it produces and sells 25,250 units, its average costs
per unit are as follows:
Average Cost per Unit
Direct materials
$
8.30
Direct labor
$
5.30
Variable manufacturing overhead
$
2.80
Fixed manufacturing overhead
$
6.30
Fixed selling expense
$
4.80
Fixed administrative expense
$
3.80
Sales commissions
$
2.30
Variable administrative expense
$
1.80
Required:
1. For financial accounting purposes, what is the total amount
of...
Kubin Company's relevant range of production is 23,000 to 27,500 units. When it produces and sells...
Kubin Company's relevant range of production is 23,000 to 27,500
units. When it produces and sells 25,250 units, its average costs
per unit are as follows
Direct Materials
$8.30
Direct Labor
$5.30
Variable Manufacturing Overhead
$2.80
Fixed Manufacturing Overhead
$6.30
Fixed Selling Expense
$4.80
Fixed Administrative Expense
$3.80
Sales Commissions
$2.30
Variable Administrative Expense
$1.80
Required
1. If 23,000 units are produced and sold, what is the variable
cost per unit produced and sold?
2. If 27,500 units are produced...
Kubin Company’s relevant range of production is 20,000 to 23,000 units. When it produces and sells...
Kubin Company’s relevant range of production is 20,000 to 23,000
units. When it produces and sells 21,500 units, its average costs
per unit are as follows:
Amount per Unit Direct materials $ 8.00 Direct labor $ 5.00
Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead
$ 4.00 Fixed selling expense $ 4.50 Fixed administrative expense $
3.50 Sales commissions $ 2.00 Variable administrative expense $
1.50 Required:
1. If 20,000 units are produced and sold, what is the variable
cost...
Kubin Company’s relevant range of production is 20,000 to 23,000 units. When it produces and sells...
Kubin Company’s relevant range of production is 20,000 to 23,000
units. When it produces and sells 21,500 units, its average costs
per unit are as follows:
Average Cost per Unit
Direct materials
$
8.00
Direct labor
$
5.00
Variable manufacturing overhead
$
2.50
Fixed manufacturing overhead
$
6.00
Fixed selling expense
$
4.50
Fixed administrative expense
$
3.50
Sales commissions
$
2.00
Variable administrative expense
$
1.50
Required:
1. Assume the cost object is units of production:
a. What...
Kubin Company’s relevant range of production is 26,000 to 35,500 units. When it produces and sells...
Kubin Company’s relevant range of production is 26,000 to 35,500
units. When it produces and sells 30,750 units, its average costs
per unit are as follows:
Average Cost per Unit
Direct materials
$
8.60
Direct labor
$
5.60
Variable manufacturing overhead
$
3.10
Fixed manufacturing overhead
$
6.60
Fixed selling expense
$
5.10
Fixed administrative expense
$
4.10
Sales commissions
$
2.60
Variable administrative expense
$
2.10
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:
1. Assume the cost object is units of production:
a. What...
Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells...
Kubin Company’s 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 Unit
Direct materials
$
7.00
Direct labor
$
4.00
Variable manufacturing overhead
$
1.50
Fixed manufacturing overhead
$
5.00
Fixed selling expense
$
3.50
Fixed administrative expense
$
2.50
Sales commissions
$
1.00
Variable administrative expense
$
0.50
Required:
1. Assume the cost object is units of production:
a. What...
Kubin Company’s relevant range of production is 28,000 to 31,500 units. When it produces and sells...
Kubin Company’s relevant range of production is 28,000 to 31,500
units. When it produces and sells 29,750 units, its average costs
per unit are as follows:
Amount per Unit
Direct materials
$
8.80
Direct labor
$
5.80
Variable manufacturing overhead
$
3.30
Fixed manufacturing overhead
$
6.80
Fixed selling expense
$
5.30
Fixed administrative expense
$
4.30
Sales commissions
$
2.80
Variable administrative expense
$
2.30
Required:
1. If 28,000 units are produced and sold, what is the variable...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- (Real options and capital budgeting) You have come up with a great idea for a Tex-Mex-Thai...
- Write a java program that will first display the following menu: Choose one of the following...
- A box of mass 5kg moves to the left at a speed of 6m/s. The box...
- Sartre says that existentialism leads one to recognize the human condition as one of forlornness, anguish,...
- DEF stock currently trades at $112. Use the chart for the questions. Call Premiums Put Premiums...
- Design the circuit that gives the total number of your school number as an asynchronous counter....
- Consider an ideal gas-turbine cycle with two stages of compression and two stages of expansion. The...
ADVERTISEMENT