What is the incremental cost incurred if the company increases production and sales from 12,500 to 12,501 un your answers to 2 decimal places.) irect materials irect labor ariable manufacturing overhead Fales commissions "ariable administrative expense "ariable cost per unit sold 0.00 %24

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Chapter5: Process Costing
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What is the incremental cost incurred if the company increases production and sales from 12,500 to 12,501 units? (Round
your answers to 2 decimal places.)
Direct materials
Direct labor
Variable manufacturing overhead
Sales commissions
Variable administrative expense
Variable cost per unit sold
$
0.00
< Required 1
Required 3
>
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the incremental cost incurred if the company increases production and sales from 12,500 to 12,501 units? (Round your answers to 2 decimal places.) Direct materials Direct labor Variable manufacturing overhead Sales commissions Variable administrative expense Variable cost per unit sold $ 0.00 < Required 1 Required 3 >
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:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Average Cost per
Unit
$ 7.20
$ 4.20
$ 1.70
$ 5.20
$ 3.70
$ 2.70
$ 1.20
$ 0.70
Required:
1. What is the incremental manufacturing cost incurred if the company increases production from 12,500 to 12,501 units?
2. What is the incremental cost incurred if the company increases production and sales from 12,500 to 12,501 units?
3. Assume that Kubin Company produced 12,500 units and expects to sell 12,280 of them. If a new customer unexpectedly emerges
and expresses interest in buying the 220 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 12,500 units and expects to sell 12,280 of them. If a new customer unexpectedly emerges
and expresses interest in buying the 220 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?
Transcribed Image Text: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: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 7.20 $ 4.20 $ 1.70 $ 5.20 $ 3.70 $ 2.70 $ 1.20 $ 0.70 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 12,500 to 12,501 units? 2. What is the incremental cost incurred if the company increases production and sales from 12,500 to 12,501 units? 3. Assume that Kubin Company produced 12,500 units and expects to sell 12,280 of them. If a new customer unexpectedly emerges and expresses interest in buying the 220 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 12,500 units and expects to sell 12,280 of them. If a new customer unexpectedly emerges and expresses interest in buying the 220 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?
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