Question

newconnect.mheducation.com MP sterling Knight 2020 - Google Search HW Help Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Amount per Unit $ 8.30 $ 5.30 $ 2.80 $ 6.30 $ 4.80 $ 3.80 $ 2.30 $ 1.80 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 25,250 to 25,251 units? 2. What is the incremental cost incurred if the company increases production and sales from 25,250 to 25,251 units? 3. Assume that 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 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 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 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 of the company increases production from 25,250 to 25,251 units?

Answer 1

Solution 1:

Computation of incremental manufacturing cost incurred for change in production from 25250 to 25251 units
Particulars	Amount
Direct materials	$8.30
Direct labor	$5.30
Variable manufacturing overhead	$2.80
Total incremental manufacturing cost	$16.40

Solution 2:

Computation of incremental cost incurred for change in production from 25250 to 25251 units
Particulars	Amount
Direct materials	$8.30
Direct labor	$5.30
Variable manufacturing overhead	$2.80
Sales commission	$2.30
Variable administrative expenses	$1.80
Total incremental cost	$20.50

Solution 3:

Incremental manufacturing cost = $0 (because units have already produced)

Solution 4:

Incremental selling and administrative cost per unit
Particulars	Amount
Sales commission	$2.30
Variable administrative expenses	$1.80
Total	$4.10