Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it
ID: 2400143 • Letter: K
Question
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:
Required:
1. If 18,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 22,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 22,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 18,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 22,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 22,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
What do you add to get the totals for the listed above
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 $ 0.50Explanation / Answer
1)
Calculation of Variable cost per unit:
Direct materials = 7
Direct labor = 4
Variable manufacturing overhead = 1.50
Sales commission = 1
Variable administrative expense = 0.50
Variable cost per unit = 7+4+1.5+1+0.5 = 14
2)
Variable cost per unit = 14 (Same as 18000 units)
3)
Total amount of Variable cost = Number of units*Variable cost per unit
= 18000*14 = 252000
4)
Total amount of Variable cost = Number of units*Variable cost per unit
= 22000*14 = 308000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.