Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average cost per unit are as follows: Average Cost Per Unit $7.00 $4.00 $1.50 $5.00 $3.50 $2.50 $1.00 $0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales Commission Variable administrative expense A) If 18,000 units are produced and sold, what is the variable cost per unit produced and sold? B) If 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sod? C) If 18,000 units are produced, what are the fixed manufacturing cost per unit produced? D) If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? E) What is the total manufacturing cost (product cost) of producing 18,000 units?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
icon
Related questions
icon
Concept explainers
Topic Video
Question
Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells
20,000 units, its average cost per unit are as follows:
Average Cost
Per Unit
$7.00
$4.00
$1.50
$5.00
$3.50
$2.50
$1.00
$0.50
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales Commission
Variable administrative expense
A) If 18,000 units are produced and sold, what is the variable cost per unit produced and sold?
B) If 18,000 units are produced and sold, what is the total amount of variable cost related to the
units produced and sod?
C) If 18,000 units are produced, what are the fixed manufacturing cost per unit produced?
D) If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred
to support this level of production?
E) What is the total manufacturing cost (product cost) of producing 18,000 units?
Transcribed Image Text:Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average cost per unit are as follows: Average Cost Per Unit $7.00 $4.00 $1.50 $5.00 $3.50 $2.50 $1.00 $0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales Commission Variable administrative expense A) If 18,000 units are produced and sold, what is the variable cost per unit produced and sold? B) If 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sod? C) If 18,000 units are produced, what are the fixed manufacturing cost per unit produced? D) If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? E) What is the total manufacturing cost (product cost) of producing 18,000 units?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub