Kubin Company's relevant range of production is 23,000 to 27,500 units. When it produces and sells 25, 250 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.30 Direct labor $ 5.30 Variable manufacturing overhead $ 2.80 Fixed manufacturing overhead $ 6.30 Fixed selling expense $ 4.80 Fixed administrative expense $ 3.80 Sales commissions $ 2.30 Variable administrative expense $ 1.80 Required: What is the incremental manufacturing cost incurred if the company increases production from 25, 250 to 25, 251 units? What is the incremental cost incurred if the company increases production and sales from 25, 250 to 25, 251 units? Assume Kubin Company produced 25, 250 units and expects to sell 24, 920 of them. If a new customer unexpectedly emerges and expresses interest in buying the 330 extra units that have been produced by the company and would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? Assume Kubin Company produced 25, 250 units and expects to sell 24,920 of them. If a new customer unexpectedly emerges and expresses interest in buying the 330 extra units that have been produced by the company and would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer?
Kubin Company's relevant range of production is 23,000 to 27,500 units. When it produces and sells 25, 250 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.30 Direct labor $ 5.30 Variable manufacturing overhead $ 2.80 Fixed manufacturing overhead $ 6.30 Fixed selling expense $ 4.80 Fixed administrative expense $ 3.80 Sales commissions $ 2.30 Variable administrative expense $ 1.80 Required: What is the incremental manufacturing cost incurred if the company increases production from 25, 250 to 25, 251 units? What is the incremental cost incurred if the company increases production and sales from 25, 250 to 25, 251 units? Assume Kubin Company produced 25, 250 units and expects to sell 24, 920 of them. If a new customer unexpectedly emerges and expresses interest in buying the 330 extra units that have been produced by the company and would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? Assume Kubin Company produced 25, 250 units and expects to sell 24,920 of them. If a new customer unexpectedly emerges and expresses interest in buying the 330 extra units that have been produced by the company and would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer?
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Transcribed Image Text:Kubin Company's relevant range of production is 23,000 to 27, 500 units. When it produces and sells 25, 250 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.30 Direct labor $ 5.30
Variable manufacturing overhead $ 2.80 Fixed manufacturing overhead $ 6.30 Fixed selling expense $ 4.80 Fixed administrative expense $ 3.80 Sales commissions $ 2.30 Variable administrative expense $ 1.80 Required: What
is the incremental manufacturing cost incurred if the company increases production from 25, 250 to 25, 251 units? What is the incremental cost incurred if the company increases production and sales from 25, 250 to 25, 251
units? Assume Kubin Company produced 25, 250 units and expects to sell 24, 920 of them. If a new customer unexpectedly emerges and expresses interest in buying the 330 extra units that have been produced by the
company and would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? Assume Kubin Company produced 25, 250 units and expects to sell 24, 920 of
them. If a new customer unexpectedly emerges and expresses interest in buying the 330 extra units that have been produced by the company and would otherwise remain unsold, what incremental selling and administrative
cost per unit is incurred to sell these units to the customer?
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