Question
In: Accounting
Kubin Company’s relevant range of production is 16,000 to 24,500 units. When it produces and sells...
Kubin Company’s relevant range of production is 16,000 to 24,500 units. When it produces and sells 20,250 units, its average costs per unit are as follows: Amount per Unit Direct materials $ 7.70 Direct labor $ 4.70 Variable manufacturing overhead $ 2.20 Fixed manufacturing overhead $ 5.70 Fixed selling expense $ 4.20 Fixed administrative expense $ 3.20 Sales commissions $ 1.70 Variable administrative expense $ 1.20 Required: 1. If 16,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 24,500 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 16,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 24,500 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 16,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 24,500 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 16,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 24,500 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
Solutions
Expert Solution
| total variable cost | per unit | total | |||||||
| Direct materials | 7.7 | 20,250 | = | 155925 | |||||
| Direct labor | 4.7 | 20,250 | = | 95175 | |||||
| VMOH | 2.2 | 20,250 | = | 44550 | |||||
| Sales commission | 1.7 | 20,250 | = | 34425 | |||||
| Variable adm expense | 1.2 | 20,250 | = | 24300 | |||||
| total variable cost | 17.5 | = | 354375 | ||||||
| total fixed cost | |||||||||
| Fixed MOH | 5.7 | 20,250 | = | 115425 | |||||
| Fixed selling expense | 4.2 | 20,250 | = | 85050 | |||||
| Fixed administrative exp | 3.2 | 20,250 | = | 64800 | |||||
| total fixed overhead | 265275 | ||||||||
| 1) | Variable cost per unit | 17.5 | answer | ||||||
| 2) | Variable cost per unit | 17.5 | answer | ||||||
| 3) | Total amount of variable cost for | 16,000 | units= | 280000 | answer | (16000*17.5) | |||
| 4) | Total amount of variable cost for | 24,500 | units= | 428750 | answer | (24500*17.5) | |||
| 5) | Average FMOH cost per unit produced | ||||||||
| 5.7 | * | 20,250 | / | 16,000 | = | 7.21 | answer | ||
| 6) | Average FMOH cost per unit produced | ||||||||
| 5.7 | * | 20,250 | / | 24,500 | = | 4.71 | answer | ||
| 7) | total Fixed manufacturing overhead cost | ||||||||
| 7.214063 | * | 16,000 | = | 115425 | answer | ||||
| 8) | total Fixed manufacturing overhead cost | ||||||||
| 4.711224 | * | 24,500 | = | 115425 | answer | ||||
ekkarill92 answered 1 year agoRelated Solutions
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Direct materials
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Direct labor
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Variable manufacturing overhead
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Fixed manufacturing overhead
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Fixed selling expense
$
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Fixed administrative expense
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Sales commissions
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Direct materials
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Direct labor
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Variable manufacturing
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Fixed manufacturing
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Fixed selling expense
$
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Fixed administrative
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Sales commissions
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1.50
Variable administrative
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$
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Required:
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Kubin Company’s relevant range of production is 28,000 to 31,500 units. When it produces and sells...
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units. When it produces and sells 29,750 units, its average costs
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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
$
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Sales commissions
$
2.80
Variable administrative
expense
$
2.30
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1. What is the incremental manufacturing cost incurred if the
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Direct labor$4.10
Variable manufacturing overhead$1.60
Fixed manufacturing overhead$5.10
Fixed selling expense$3.60
Fixed administrative expense$2.60
Sales commissions$1.10
Variable administrative expense$0.60
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Direct labor
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Variable manufacturing overhead
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$
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Fixed selling expense
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Fixed administrative expense
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Sales commissions
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Direct materials
$
8.40
Direct labor
$
5.40
Variable manufacturing
overhead
$
2.90
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overhead
$
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$
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expense
$
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