Kubin Companys relevant range of production is 30000 to 3500

Kubin Company\'s relevant range of production is 30,000 to 35,000 units. When it produces and sells 32.500 units, its average costs per unit are as follows: Direct naterials Direct labor 9.00 s 6.00 3.50 s7.00 s5.5a s 4.50 3.00 s 2.50 overhead Fixed selling expense Fixed Required: 1. If 30.000 units are produced and sold, what is the varlable cost per unit produced and sold? 2. If 35,000 units are produced and sold, what is the varlable cost per unit produced and sold? 3. If 30,000 units are produced and sold, what is the totai amount of variable cost related to the units produced and sold? 4. If 35,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 30,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 35,000 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 30.000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 35.000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? (Round per unit volues to 2 decimal places.) entirely correct. Next > arch

Solution

Answer 1 Variable cost per unit produced and sold = Direct Material cost per unit + Direct Labour cost per unit + Variable Manufacturing overhead cost per unit + Sales Commission + Variable admin.expense Variable cost per unit when 30000 units produced and sold = $9.00 + $6.00 + $3.50 + $3 + $2.50 = $24 Answer 2 Variable cost per unit when 35000 units produced and sold = $9.00 + $6.00 + $3.50 + $3 + $2.50 = $24 Answer 3 Total amount of variable cost related to 30000 units produced and sold = 30000 units * $24 = $7,20,000 Answer 4 Total amount of variable cost related to 35000 units produced and sold = 35000 units * $24 = $8,40,000 Answer 5 Average fixed manufacturing cost per unit when 30000 units produced = [32500 units * $7] / 30000 units = $7.58 per unit Answer 6 Average fixed manufacturing cost per unit when 35000 units produced = [32500 units * $7] / 35000 units = $6.50 per unit Answer 7 Total Manufacturing cost incurred to support the 30000 units level of production = $2,27,500 Answer 8 Total Manufacturing cost incurred to support the 35000 units level of production = $2,27,500