Kubin Company\'s relevant range of production is 18,000 to 22,000 units. When it
ID: 2515185 • 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 Direct materials Direct labor Variable maufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Salescommissions Variable administrative expense Amount per Unit $7.00 $4.00 $1.50 5.00 $3.50 $2.50 $1.00 $0.50 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? Round per unit values to 2 decimal places.) 1. Variable cost per unit 2. Variable cost per unit 3. Total amount of variable cost 4. Total amount of variable cost 5. Average fixed manufacturing cost per unit 6. Average fixed manufacturing cost per unit 7. Total amount of fixed manufacturing overhead .Total amount of fixed manufacturing overheadExplanation / Answer
Solution 1:
Variable cost per unit if 18000 unit produced and sold = Direct material + Direct labor + variable manufacturing overhead + Sales commission + variable administrative expense
= $7 + $4 + $1.50 + $1 + $0.50 = $14
Solution 2:
Variable cost per unit if 22000 unit produced and sold = $14
Solution 3:
Total amount of variable cost, if 18000 units produced and sold = 18000* $14 = $252,000
Solution 4:
Total amount of variable cost, if 22000 units produced and sold = 22000* $14 = $308,000
Solution 5:
Total fixed manufacturing cost = Fixed manufacturing overhead = $5 * 20000 = $100,000
If 18000 units are produced, average fixed manufacturing cost per unit = $100,000 / 18000 = $5.56
Solution 6:
If 22000 units are produced, average fixed manufacturing cost per unit = $100,000 / 22000 = $4.55
Solution 7:
If 18000 units are produced, Total amount of fixed manufacturing overhead incurred to support this level of production = $100,000
Solution 8:
If 22000 units are produced, Total amount of fixed manufacturing overhead incurred to support this level of production = $100,000
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