please helppppp right away its due plzzz
1.
Incremental manufacturing cost incurred = $14.6
Solution -
Direct material | $7.7 |
Direct labor | $4.7 |
Variable manufacturing overhead | $2.2 |
Total incremental cost | $14.6 |
The incremental manufacturing cost incurred when production increases from 20250 units 20251 units is $14.6
The fixed costs don't change because of change in production, so they are not included in incremental cost.
2)
Incremental cost = $17.5
Direct material | $7.7 |
Direct labor | $4.7 |
Variable manufacturing overhead | $2.2 |
Sales commission | $1.7 |
Variable administrative cost | $1.2 |
Total incremental cost | $17.5 |
OR
Incremental manufacturing cost | $14.6 |
(+) sales commission | $1.7 |
(+) variable administrative cost | $1.2 |
Total incremental cost | $17.5 |
The difference between the requirement 1 and requirement 2 is administrative and sales cost. That means, the first one is asking for only incremental manufacturing cost where as the other is asking for total incremental cost. So variable administrative and sales costs are added to get total incremental cost. Again, the fixed administrative and sales cost are not added as they don't change because of increased sales.
3)
The incremental manufacturing cost per unit incurred to sell the 270 units = $0
Solution -
The 20250 units are already produced by the company and out of these 20250 units when 270 units are sold to a new customer there is no increase in the manufacturing cost, because the cost related to manufacturing of these 270 units are also included in the cost relating to 20250 units.
4)
The incremental selling and administrative cost per unit = $2.9
Solution -
When 20250 units are produced and when unexpectedly a new customer asks for 270 units, to sell these 270 units the company incurs $2.9 ( sales commission of $1.7 per unit + variable administrative cost of $1.2 per unit). The fixed selling and administrative cost are not included as they remain same whether these 270 units are sold or not.
please helppppp right away its due plzzz Kubin Company's relevant range of production is 16,000 to...
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