CH1 Assignment Saved Kubin Company\'s relevant range of production is 21000 to 2
ID: 2328817 • Letter: C
Question
CH1 Assignment Saved Kubin Company's relevant range of production is 21000 to 25 000 units When it produces and sells 23,000 units, its average costs per unit are as follows Average Cost per Unit s 8.10 5.10 s 2.60 5 6.10 poinms Direct materials Dinect lbor Variablesanufacturing overhead Fixed manufacturing overhead F Sxed selling expense Fixed adeinistrative expense Sales comnissions s 3.60 s 2.10 $ 1.60 Required 1. For fimancial accounting purposes, what is the total armnouns of product costs incurred to make 23,000 unts 2. For financial accounting purposes. what is the total amount of penod costs incurred to sell 23,000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? A For financial accounting purposes, what is the total amount of period costs incurred to sell 21.000 units? intermediete celculetions For all requirements, do not e S273 700 3 |Total hev 1 of 2 NextExplanation / Answer
At production and sales volume of 23,000 units:
Variable Product Costs per unit = Direct Materials + Direct Labor + Variable Manufacturing Overhead
Variable Product Costs per unit = $8.10 + $5.10 + $2.60
Variable Product Costs per unit = $15.80
Fixed Product Cost = Fixed Manufacturing Overhead per unit * Number of units
Fixed Product Cost = $6.10 * 23,000
Fixed Product Cost = $140,300
Variable Period Costs per unit = Sales Commissions + Variable Administrative Expense
Variable Period Costs per unit = $2.10 + $1.60
Variable Period Costs per unit = $3.70
Fixed Period Costs per unit = Fixed Selling Expense + Fixed Administrative Expense
Fixed Period Costs per unit = $4.60 + $3.60
Fixed Period Costs per unit = $8.20
Fixed Period Costs = Fixed Period Costs per unit * Number of units
Fixed Period Costs = $8.20 * 23,000
Fixed Period Costs = $188,600
Answer 3.
At production and sales volume of 25,000 units:
Variable Product Costs per unit = $15.80
Fixed Product Cost = $140,300
Total Product Cost = $15.80 * 25,000 + $140,300
Total Product Cost = $535,300
Answer 4.
At production and sales volume of 21,000 units:
Variable Period Costs per unit = $3.70
Fixed Period Costs = $188,600
Total Period = $3.70 * 21,000 + $188,600
Total Period = $266,300