FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Required information
[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its
average costs per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Average Cost
per Unit
$ 7.60
$ 4.60
$ 2.10
$ 5.60
$4.10
$ 3.10
$ 1.60
$ 1.10
Required:
1. If 15,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 19,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 15,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 19,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 15,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 19,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 15,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 19,000 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. and 2. Variable cost per unit produced and sold
3. and 4. Total amount of variable cost related to units produced and sold
5. and 6. Average fixed manufacturing cost per unit produced
7. and 8. Total amount of fixed manufacturing overhead
15,000 Units 19,000 Units
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Transcribed Image Text:ok t ! Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 7.60 $ 4.60 $ 2.10 $ 5.60 $4.10 $ 3.10 $ 1.60 $ 1.10 Required: 1. If 15,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 19,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 15,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 19,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 15,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 19,000 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 15,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 19,000 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. and 2. Variable cost per unit produced and sold 3. and 4. Total amount of variable cost related to units produced and sold 5. and 6. Average fixed manufacturing cost per unit produced 7. and 8. Total amount of fixed manufacturing overhead 15,000 Units 19,000 Units
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