Question

Kubin Company's relevant range of production is 24,000 to 31,000 units. When it produces and sells 27,500 units, its average costs per unit are as follows: 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 $ 8.40 $ 5.40 $ 2.90 $ 6.40 $ 4.90 $ 3.90 $ 2.40 $ 1.90 (8 01:37:27 References Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 27,500 to 27,501 units? 2. What is the incremental cost incurred if the company increases production and sales from 27,500 to 27,501 units? 3. Assume that Kubin Company produced 27,500 units and expects to sell 27,160 of them. If a new customer unexpectedly emerges and expresses interest in buying the 340 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 27,500 units and expects to sell 27,160 of them. If a new customer unexpectedly emerges and expresses interest in buying the 340 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. Required 1 Required 2 Required 3 Required 4 What is the incremental manufacturing cost incurred if the company increases production from 27,500 to 27,501 units? (Round your answers to 2 decimal places.) Direct materials Direct labor Variable manufacturing overhead Total incremental cost $ 0.00 < Required 1 Required 2 >

Answer 1

1
Direct materials	8.40
Direct labor	5.40
Variable manufacturing overhead	2.90
Total incremental cost	16.70
2
Direct materials	8.40
Direct labor	5.40
Variable manufacturing overhead	2.90
Sales commissions	2.40
Variable administrative expense	1.90
Variable cost per unit sold	21.00
3
Incremental manufacturing cost	0
4
Sales commissions	2.40
Variable administrative expense	1.90
Variable cost per unit sold	4.30