Chapter 1 Homework Help Save & Exit Submit Check my work 2 Kubin Company\'s relevant range of production is 25,000 to 33,500 units. When it produces and sells 29,250 units, its average costs per unit are as follows Anount per Direct materials Direet labor Variable manufacturing overhead rixed manufacturing overhead rixed selling expense Fixed adainistrative expense s8.50 $ 5.50 3.00 6.50 $ 5.00 s 4.00 s 2.50 s 2.00 points les comissions Variable administrative expense Required: 1 What is the incremental manufacturing cost incurred if the company increases production from 29,250 to 29,251 units? 2. What is the incremental cost incurred if the company increases production and sales from 29,250 to 29.251 units? 3. Assume that Kubin Company produced 29,250 units and expects to sell 28,900 of them. If a new customer unexpectedly emerges and expresses interest in buying the 350 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 29.250 units and expects to sell 28,900 of them. If a new customer unexpectedly emerges and expresses interest in buying the 350 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? Complete this question by entering your answers in the tabs below. 888 a 3 5 6 7 8 9
Incremental manufacturing costs are those which are incurred specifically for producing an additional unit.
If production is increased from 29250 to 29251 units, the additional costs would be:
If both manufacturing and sales are increased from 29250 to 29251 units, the incremental cost would be:
Incremental manufacturing costs incurred to sell those additional350 units:
$17.00× 350 units
=$5950
Incremental selling costs incurred:
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| Direct Material | $8.50 |
| Direct Labour | $5.50 |
| Variable manufacturing exp | $3.00 |
| Incremental costs | $17.00 |
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