Kubin Company’s relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as follows:
| Average Cost per Unit | |
|---|---|
| Direct materials | $ 8.70 |
| Direct labor | $ 5.70 |
| Variable manufacturing overhead | $ 3.20 |
| Fixed manufacturing overhead | $ 6.70 |
| Fixed selling expense | $ 5.20 |
| Fixed administrative expense | $ 4.20 |
| Sales commissions | $ 2.70 |
| Variable administrative expense | $ 2.20 |
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 28,000 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 28,000 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 29,000 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 27,000 units?
I have attempted twice and for 3 the answers are not 719,000 or 704,700 and
number 4 isn't 400,400
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Exercise 1-10 Differential Costs and Sunk Costs (L01-5) Kubin Company's relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 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 Amount per Unit $ 8.70 $ 5.70 $ 3.20 $ 6.70 $ 5.20 $ 4.20 $ 2.70 $ 2.20 Required: 1. What is...
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Kubin Company's relevant range of production is 22,000 to 27,000 units. When it produces and sells 24,500 units, its average costs per unit are as follows: Average Cost per Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $8.20 $ 5.20 $ 2.70 $ 6.20 $ 4.70 $ 3.70 $ 2.20 $1.70 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to...
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Exercise 1-10 Differential Costs and Sunk Costs [LO1-5] Kubin Company's relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as follows: Amount per Unit $8.70 5.70 $ 3.20 $ 6.70 $ 5.20 $ 4.20 2.70 2.20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. What is the incremental manufacturing cost...
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Exercise 1-10 Differential Costs and Sunk Costs [LO1-5] Kubin Company's relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as follows: Amount per Unit 8.70 5.70 3.20 6.70 $ 5.20 $ 4.20 $ 2.70 2.20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. What is the incremental manufacturing cost incurred...
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