Question

Kubin Company’s relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows:

  

Ciapel | IlleWUIK 1 werp Sdved CXIL SUL Check my work 2.5 points Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Amount per Unit $ 7.20 $ 4.20 $ 1.70 $ 4.20 $ 3.70 $ 2.70 $ 1.20 $ 0.70 eBook Print References Required: 1. If 11,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 14,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 11,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 14,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 11,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 14,000 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 11,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 14,000 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.) 1. Variable cost per unit 2. Variable cost per unit 3. Total amount of variable cost 4. Total amount of variable cost 5. Average fixed manufacturing cost per unit 6. Average fixed manufacturing cost per unit 7. Total amount of fixed manufacturing overhead 8. Total amount of fixed manufacturing overhead

Answer 1

Solution 1:

Variable cost per unit at 11000 units = Direct materials +Direct labor + Variable manufacturing overhead + Sales commission + Variable administrative expenses

= $7.20 + $4.20 + $1.70 + $1.20 + $0.70 = $15 per unit

Solution 2:

Variable cost per unit at 14000 units = Direct materials +Direct labor + Variable manufacturing overhead + Sales commission + Variable administrative expenses

= $7.20 + $4.20 + $1.70 + $1.20 + $0.70 = $15 per unit

Solution 3:

Total variable cost at 11000 units = 11000*$15 = $165,000

Solution 4:

Total variable cost at 14000 units = 14000*$15 = $210,000

Solution 5:

Total fixed manufacturing cost = 12500*$4.20 = $52,500

Average fixed manufacturing cost per unit at production level of 11000 units = $52,500 / 11000 = $4.77 per unit

Solution 6:

Average fixed manufacturing cost per unit at production level of 14000 units = $52,500 / 14000 = $3.75 per unit

Solution 7:

Total fixed manufacturing overhead at production level of 11000 units = $52,500

Solution 8:

Total fixed manufacturing overhead at production level of 14000 units = $52,500