Question
In: Accounting
Kubin Company’s relevant range of production is 13,000 to 18,000 units. When it produces and sells...
Kubin Company’s relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 units, its average costs per unit are as follows: Amount per Unit Direct materials $ 7.40 Direct labor $ 4.40 Variable manufacturing overhead $ 1.90 Fixed manufacturing overhead $ 5.40 Fixed selling expense $ 3.90 Fixed administrative expense $ 2.90 Sales commissions $ 1.40 Variable administrative expense $ 0.90 Required: 1. If 13,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 18,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 13,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 13,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 18,000 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 13,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 18,000 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.)
Solutions
Expert Solution
| 1 | ||
| Direct materials | 7.40 | |
| Direct labor | 4.40 | |
| Variable manufacturing overhead | 1.90 | |
| Sales commissions | 1.40 | |
| Variable administrative expense | 0.90 | |
| Variable cost per unit produced and sold | 16.00 | |
| 2 | ||
| Direct materials | 7.40 | |
| Direct labor | 4.40 | |
| Variable manufacturing overhead | 1.90 | |
| Sales commissions | 1.40 | |
| Variable administrative expense | 0.90 | |
| Variable cost per unit produced and sold | 16.00 | |
| 3 | ||
| Unit produced and sold | 13000 | |
| X Variable cost per unit | 16.00 | |
| Total amount of variable cost | 208000 | |
| 4 | ||
| Unit produced and sold | 18000 | |
| X Variable cost per unit | 16.00 | |
| Total amount of variable cost | 288000 | |
| 5 | ||
| Fixed manufacturing costs | 83700 | =15500*5.40 |
| Divide by units | 13000 | |
| Average fixed manufacturing cost per unit | 6.44 | |
| 6 | ||
| Fixed manufacturing costs | 83700 | =15500*5.40 |
| Divide by units | 18000 | |
| Average fixed manufacturing cost per unit | 4.65 | |
| 7 | ||
| Total amount of fixed manufacturing overhead | 83700 | =15500*5.40 |
| 8 | ||
| Total amount of fixed manufacturing overhead | 83700 | =15500*5.40 |
ekkarill92 answered 1 year agoRelated Solutions
Kubin Company’s relevant range of production is 13,000 to 18,000 units. When it produces and sells...
Kubin Company’s relevant range of production is 13,000 to 18,000
units. When it produces and sells 15,500 units, its average costs
per unit are as follows: Average Cost per Unit Direct materials $
7.40 Direct labor $ 4.40 Variable manufacturing overhead $ 1.90
Fixed manufacturing overhead $ 5.40 Fixed selling expense $ 3.90
Fixed administrative expense $ 2.90 Sales commissions $ 1.40
Variable administrative expense $ 0.90 Required: 1. Assume the cost
object is units of production: a. What is...
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
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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...
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Kubin Company’s relevant range of production is 18,000 to 22,000
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$
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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. For financial accounting purposes, what is the total amount
of...
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 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:
Amount 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. If 18,000 units are produced and sold, what is the variable
cost...
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:
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a. What...
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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
$
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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 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:
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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
$
4.30
Sales commissions
$
2.80
Variable administrative expense
$
2.30
Required:
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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...
Kubin Company’s relevant range of production is 14,000 to 20,500 units. When it produces and sells...
Kubin Company’s relevant range of production is 14,000 to 20,500
units. When it produces and sells 17,250 units, its average costs
per unit are as follows:
Direct materials
$
7.50
Direct labor
$
4.50
Variable manufacturing
overhead
$
2.00
Fixed manufacturing
overhead
$
5.50
Fixed selling expense
$
4.00
Fixed administrative
expense
$
3.00
Sales commissions
$
1.50
Variable administrative
expense
$
1.00
Required:
1. What is the incremental manufacturing cost incurred if the
company increases production from 17,250 to...
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