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Kubin Company's relevant range of production is 28,000 to 31,500 units

Accounting Jan 25, 2021

Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and sells 29750 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 Amount per Unit $ 8.80 $ 5.30 $ 3.30 $ 6.80 $5.30 $ 4.30 $ 2.80 $ 2.30 Required: 1.628.000 units are produced and sold, what is the variable cost per unit produced and sold? 2.1 31500 units are produced and sold, what is the variable cost per unit produced and sold? 3.11 28.000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. f 31,500 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5.1 28,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6.1 31,500 units are produced, what is the average fixed manufacturing cost per unit produced? 7.11 28.000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8.16 31500 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.) 28.000 units 31.500 Units 182 Variable cost per sint produced and sold 3.84 Total amount of variable cost related to units produced and sold 5&6 Average fixed manufacturing cost per unit produced 7 *Totat amount of fixed manufacturing overhead

Expert Solution

  28000 Units 31500 Units
1&2 Variable Cost per unit produced and Sold 23 23
3&4 Total Amount of Variable Cost related to Unit Produced and Sold 644000 724500
5&6 Average Fixed Manufacturing Cost per unit produced 7.23 6.42
7&8 Total Amount of fixed manufacturing Overhead 202300 202300

Workings

Direct Material 8.80
Direct labour 5.80
Variable Manufacturing Overhead 3.30
Sales Comission 2.80
Variable Admin Expense 2.30
Variable Cost Per Unit 23.00

Fixed Manufacturing Overhead(6.80*29750)=202300

1-Variable Cost Per Unit =23

2-Variable Cost Per Unit =23

3-Total Amount of Variable Cost(23*28000)=644000

4-Total Amount of Variable Cost(23*31500)=724500

5-Avg. Fixed Manufacturing OH(202300/28000)=7.23

6-Avg. Fixed Manufacturing OH(202300/31500)=6.42

7-Total Amount of Fixed Manufacturing OH=202300

8-Total Amount of Fixed Manufacturing OH=202300

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