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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:

1. If 26,000 units are produced and sold, what is the variable cost per unit produced and sold?

2. If 35,500 units are produced and sold, what is the variable cost per unit produced and sold?

3. If 26,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

4. If 35,500 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

5. If 26,000 units are produced, what is the average fixed manufacturing cost per unit produced?

6. If 35,500 units are produced, what is the average fixed manufacturing cost per unit produced?

7. If 26,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

8. If 35,500 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

Sagot :

Anthougoidn

1. If 26,000 units are produced and sold, the variable cost per unit produced and sold is $22.00.

2. If 35,500 units are produced and sold, the variable cost per unit produced and sold is $22.00.

3. If 26,000 units are produced and sold, the total variable costs for units produced and sold is $572,000 ($22.00 x 26,000).

4. If 35,500 units are produced and sold, the total variable costs for units produced and sold is $781,000 ($22.00 x 35,500).

5. If 26,000 units are produced and sold, the average fixed manufacturing cost per unit is $7.81 ($202,950/26,000).

6.  If 35,500 units are produced and sold, the average fixed manufacturing cost per unit is $5.72 ($202,950/35,500).

7.  If 26,000 units are produced and sold, the total fixed manufacturing cost is $202,950.

8. If 35,500 units are produced and sold, the total fixed manufacturing cost is $202,950.

Data and Calculations:

Relevant production range = 26,000 to 35,500 units

Average production and sales units = 30,750 units

Average Variable Costs:

Direct materials                               $ 8.60

Direct labor                                      $5.60

Variable manufacturing overhead $ 3.10   $17.30

Sales commissions                        $ 2.60

Variable administrative expense  $ 2.10    $4.70

Total variable costs                     $22.00 $22.00

Fixed Costs:

                                                  Per Unit     Total

Fixed manufacturing overhead $ 6.60    $202,950 ($6.60 x 30,750)

Fixed selling expense                 $ 5.10     $156,825 ($5.10 x 30,750)

Fixed administrative expense    $ 4.10     $126,075  ($4.10 x 30,750)

Total fixed costs for 30,750 units            $485,850

Learn more about fixed and variable costs here: https://brainly.com/question/8225307 and https://brainly.com/question/5965421

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