Kubin Company’s relevant range of production is 16,000 to 24,500 units. When it produces and sells 20,250 units, its average costs per unit are as follows:

 Kubin Company’s relevant range of production is 16,000 to 24,500 units. When it produces and sells 20,250 units, its average costs per unit are as follows:

 

Required:

1. If 16,000 units are produced and sold, what is the variable cost per unit produced and sold?

2. If 24,500 units are produced and sold, what is the variable cost per unit produced and sold?

3. If 16,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

4. If 24,500 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

5. If 16,000 units are produced, what is the average fixed manufacturing cost per unit produced?

6. If 24,500 units are produced, what is the average fixed manufacturing cost per unit produced?

7. If 16,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

Answer
The total fixed manufacturing overhead remains unchanged at $115,425.

8. If 24,500 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 

Answer

The total fixed manufacturing overhead remains unchanged at $115,425.

 

Full answer 

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