Question

Kubin Company's relevant range of production is 29,000 to 33,000 units. When it produces and sells 31,000 units, its average costs per unit are as follows:
Direct materials $8.90
Direct labor $5.90
Variable manufacturing overhead $3.40
Fixed manufacturing overhead $6.90
Fixed selling expense $5.40
Fixed administrative expense $4.40
Sales commissions $2.90
Variable administrative expense $2.40

1. If 29,000 units are produced and sold , what is the variable cost per unit produced and sold ?
2. If 33,000 units are produced and sold , what is the variable cost per unit produced and sold ?
3. If 29,000 units are produced and sold , what is the total amount of variable cost related to the units produced and sold ?
4. If 33,000 units are produced and sold , what is the total amount of variable cost related to the units produced and sold ?
5. If 29,000 units are produced , what is the average fixed manufacturing cost per unit produced ?
6. If 33,000 units are produced , what is the average fixed manufacturing cost per unit produced ?
7. If 29,000 units are produced , what is the total amount of fixed manufacturing overhead incurred to support this level of production ?
8. If 33,000 units are produced , what is the total amount of fixed manufacturing overhead incurred to support this level of production ?​

Answer 1

Sales commissions is $2.90