Assignment Print View
7/9/23, 3:42 PM
Cost Classifications (Algo)
[The following information applies to the questions displayed below.]
Kubin Company’s relevant range of production is 24,000 to 31,000 units. When it produces and sells 27,500 units, its
average costs per unit are as follows:
Average Cost
per Unit
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
$ 8.40
$ 5.40
$ 2.90
$ 6.40
$ 4.90
$ 3.90
$ 2.40
$ 1.90
References
Section Break
4.
Cost Classifications
(Algo)
Award: 10.00 points
Exercise 1-9 (Algo) Fixed, Variable, and Mixed Costs [LO1-4]
Required:
1. If 24,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 31,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 24,000 units are produced and sold, what is the total amount of variable cost related to the units produced and
sold?
4. If 31,000 units are produced and sold, what is the total amount of variable cost related to the units produced and
sold?
5. If 24,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 31,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 24,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this
level of production?
8. If 31,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this
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Assignment Print View
7/9/23, 3:42 PM
level of production?
(Round per unit values to 2 decimal places.)
24,000 Units 31,000 Units
1. and 2. Variable cost per unit produced and sold
3. and 4. Total amount of variable cost related to units produced and sold
5. and 6. Average fixed manufacturing cost per unit produced
7. and 8. Total amount of fixed manufacturing overhead
rev: 02_06_2020_QC_CS-197079 Garrison_17e_Rechecks_06_27_2022
References
Worksheet
Difficulty: 1 Easy
Exercise 1-9
(Algo) Fixed,
Variable, and
Mixed Costs
[LO1-4]
Learning Objective: 0104 Understand cost
classifications used to
predict cost behavior:
variable costs, fixed
costs, and mixed costs.
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