1

Required information Cost Classifications (Algo) [The following information applies to the questions displayed below.] Kubin Company's...

Question

Required information Cost Classifications (Algo) [The following information applies to the questions displayed below.] Kubin Company's...

Required information Cost Classifications (Algo) [The following information applies to the questions displayed below.] Kubin

Required information Cost Classifications (Algo) [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 12,000 to 16,000 units. When it produces and sells 14,000 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 Average cost per Unit $7.30 $4.30 $1.80 $5.30 $3.80 $2.80 $1.30 $0.80 Exercise 1-10 (Algo) Differential Costs and Sunk Costs [LO1-5) Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 14,000 to 14,001 units? 2. What is the incremental cost incurred if the company increases production and sales from 14,000 to 14,001 units? 3. Assume that Kubin Company produced 14,000 units and expects to sell 13,770 of them. If a new customer unexpectedly emerges and expresses interest in buying the 230 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 14,000 units and expects to sell 13,770 of them. If a new customer unexpectedly emerges and expresses interest in buying the 230 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?

Answers

1. Incremental manufacturing cost incurred if company increases production from 14000 units to 14001 units:

Icremental production units = 1 unit

The varaible manufacturing cost for producing that one additional unit is incremetal manufacturing cost.

Direct materials $7.30
Direct labor $4.30
Variable manufacturing overhead $1.80
Incremental manufacturing cost $13.40

2. Incremental Cost incurred if company increases production from 14000 unitsto 14001 units:

Icremental production units = 1 unit

The total variable cost for producing that one additional unit is incremetal manufacturing cost.

Direct materials $7.30
Direct labor $4.30
Variable manufacturing overhead $1.80
Sales commision $1.30
Varaible administrative expense $0.80
Incremental manufacturing cost $15.50

3. Incremental manufacturing cost per unit incurred to sell these 230 extra units to the customer.

Total units produced = 14000 units

Expected units to be sold = 13770 units

That implies, Remaining units = 230 units

Now, if a new customer willing to buy 230 units from kubin co., there is no need to manufacture additional units since the company already have 230 units on which the manufacturing cost was incurred already.

Therefore,

Incremental manufacturing cost per unit is $0, Since the cost is already incurred on those 230 units.

4. Incremental selling and administrative cost per unit incurred to sell the 230 extra units:

Variable administrative expense $0.80
Sales commission $1.30
Incremental selling & administrative cost per unit $2.10

_____×_____

Kindly upvote, All the best,

HAPOY CHEGGING.


Similar Solved Questions

1 answers
For the month of July, Monroe Company, a maker of erobot, prepared the table below that...
For the month of July, Monroe Company, a maker of erobot, prepared the table below that shows their master budget (planning or static budget) and their nexible budget Actual Master Results Budget 10.350 s90 Seo $124,000 12,000 $87 $72 $125,400 Sales (in units) Selling Price per unit Variable Cost pe...
1 answers
A 42.0 mL sample of 0.120 M HNO2 is titrated with 0.214 M KOH. (Ka for...
A 42.0 mL sample of 0.120 M HNO2 is titrated with 0.214 M KOH. (Ka for HNO2 is 4.57×10−4.) Determine the pH at the equivalence point for the titration of HNO2 and KOH....
1 answers
Tyler Company reported net income of $260,000 for the year. During the year, accounts receivable increased...
Tyler Company reported net income of $260,000 for the year. During the year, accounts receivable increased by $18,000, accounts payable decreased by $14,000 am depreciation expense of $15,000 was recorded. Net cash provided by operating activities for the year is a. $243,000. b. $213,000. C. $215,00...
1 answers
A)A mixture of xenon and helium gases, at a total pressure of 851 mm Hg, contains...
A)A mixture of xenon and helium gases, at a total pressure of 851 mm Hg, contains 30.4 grams of xenon and 0.519 grams of helium. What is the partial pressure of each gas in the mixture? PXe =  mm Hg PHe =  mm Hg B)A mixture of helium and argon gases contains helium at a partial p...
1 answers
Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January...
Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $315,000, $80,000, and $190,000, respectively. WLKT Partners contributed an additional $80,000 to Marvel, Media, LLC, on June 1, 20Y2. Madison Sander...
1 answers
You are offered a court settlement in the following terms: you will receive 5 equal payments...
You are offered a court settlement in the following terms: you will receive 5 equal payments of $2,717 each every year, with the first payment being made 3 years from now. The current annual interest rate is 7%. Assume yearly compounding. What is this settlement worth in present value terms? Enter y...
1 answers
Compute the demand function corresponding to a leontief with equal coefficient a=b=2 and then compute the...
compute the demand function corresponding to a leontief with equal coefficient a=b=2 and then compute the elasticity of demand with respect to prices...
1 answers
Please read the opening Vignette about Trader Joe's inventory practices. How has it helped you comprehend...
Please read the opening Vignette about Trader Joe's inventory practices. How has it helped you comprehend the dilemmas and practical issues of managing supply-chain inventory. Please explain in great detail. Thank you! On an early July morning a crowd has gathered for the opening of Trader Joe&#...
1 answers
Assume that a simple random sample has been selected from a normally distributed population and test...
Assume that a simple random sample has been selected from a normally distributed population and test the given claim. Identify the null and alternative hypotheses test statistic, P-value, and state the final conclusion that addresses the original claim. A simple random sample of 25 filtered 100 mm c...
1 answers
6. What is the equilibrium constant expression for the following equilibrium? 3Fe(s) + 4H2O16) 5 Fe3O4(s)...
6. What is the equilibrium constant expression for the following equilibrium? 3Fe(s) + 4H2O16) 5 Fe3O4(s) + 4H2(B) A. K = [H21 B. K = H21 [H20] C. K = [H21 [H2O]" D. K = [Fe2O3][H214 [Fe][H20]...
1 answers
Flexo Printing Company currently leases its only copy machine for $1,400 a month. The company is...
Flexo Printing Company currently leases its only copy machine for $1,400 a month. The company is considering replacing this leasing agreement with a new contract that is entirely commission based. Under the new agreement, Flexo would pay a commission for its printing at a rate of $25 for every 500 p...
1 answers
This homework is based on the topics production and perfect competition 1. Complete the following table:...
This homework is based on the topics production and perfect competition 1. Complete the following table: (2 points) Labor Quantity Produced Average Product of Labor Marginal Product of Labor van WN- When does this firm start experiencing diminishing returns?...
1 answers
The hydronium ion concentration in an aqueous solution at 25°C is 3.3x10 - M. The hydroxide...
The hydronium ion concentration in an aqueous solution at 25°C is 3.3x10 - M. The hydroxide ion concentration is M. The pH of this solution is The pOH is The pH of an aqueous solution at 25°C was found to be 6.00. The pOH of this solution is The hydronium ion concentration is The hydroxide i...
1 answers
A 0.1785 g sample of magnesium was burned in an oxygen bomb calorimeter. The total heat...
A 0.1785 g sample of magnesium was burned in an oxygen bomb calorimeter. The total heat capacity of the calorimeter plus water was 5,760 J/C. If the temperature rise of the calorimeter with water was 1.25*C, calculate the enthalpy of combustion(in kJ/mol) of magnesium. Mg(s) + 1/2O2(g) -> MgO(s) ...
1 answers
True or False a. An FFT can be computed using only real values, yet there will...
True or False a. An FFT can be computed using only real values, yet there will be aliasing of the frequency spectrum b. An FFT applied to time varying values outputs a frequency spectrum c. The FFT is a discrete Fourier transform because the input is discrete samples taken at uneven intervals...
1 answers
4. How much energy is needed to convert 64.09 grams of water at 100.°C to steam...
4. How much energy is needed to convert 64.09 grams of water at 100.°C to steam at 128.40 °C? specific heat (steam) = 2.09 J/g°C specific heat (water) = 4.18 J/g°C heat of fusion = 6.02 kJ/mol heat of vaporization = 40.6 kJ/mol 144.42 kJ    25.21 kJ    152.03 kJ &...
1 answers
Find the equivalent resistance between a and b, (i.e., Req = Rab). Answer in units of...
Find the equivalent resistance between a and b, (i.e., Req = Rab). Answer in units of ?....

-- 0.011387--