What is the incremental manufacturing cost incurred

Assignment Help Managerial Accounting
Reference no: EM132936364

Question - Kubin Company's relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its average costs per unit are as follows:

Average Cost per Unit

Direct materials $7.60

Direct labor $4.60

Variable manufacturing overhead $2.10

Fixed manufacturing overhead $5.60

Fixed selling expense $4.10

Fixed administrative expense $3.10

Sales commissions $1.60

Variable administrative expense $1.10

Required -

1. What is the incremental manufacturing cost incurred if the company increases production from 17,000 to 17,001 units?

2. What is the incremental cost incurred if the company increases production and sales from 17,000 to 17,001 units?

3. Assume that Kubin Company produced 17,000 units and expects to sell 16,740 of them. If a new customer unexpectedly emerges and expresses interest in buying the 260 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 17,000 units and expects to sell 16,740 of them. If a new customer unexpectedly emerges and expresses interest in buying the 260 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?

Reference no: EM132936364

Questions Cloud

Explain how the will impact the employer payroll costs : Explain how the will impact the employer's payroll costs? Your employer is considering adding a group term life insurance plan to the employee.
What is the standard product cost for product M : The variable overhead rate is $8 per direct labor hour, and the fixed overhead rate is $12 per direct labor hour. What is the standard product cost for product
What are the tools for effective team training in aviation : 1. What are the tools for effective team training in aviation? Give information about instructional strategies for improving team performance.
Is hrm a strategical or an operational function : 1. Is HRM a strategical or an operational function ? Explain your opinion.
What is the incremental manufacturing cost incurred : What is the incremental manufacturing cost incurred if the company increases production from 17,000 to 17,001 units
Evaluate what is the project mirr : A project has an initial cost of $50,000, expected net cash inflows of $9,000 per year for 8 years, and a cost of capital of 13%. What is the project's MIRR?
What was pelamed net income : In addition, Pelamed had interest expenses of $125 million and a corporate tax rate of 25%. What was Pelamed's 2018 net income
Compute what is the project payback period : A project has an initial cost of $70,000, expected net cash inflows of $13,000 per year for 8 years, What is the project's payback period?
What is academic integrity : 1. What is academic integrity mean to you? 2. How might violations of academic integrity (plagiaris m) impact:

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Find what is the balance in the retained earnings account

Find What is the balance in the Retained Earnings account on December 31, 2018? (Hint: Write down the entries for all the transactions since August).

  Evaluate a professional career goals statement

Develop a professional career goals statement that is suitable for use on your resume. Explain the rationale underlying development of this statement, and describe how you expect it will be perceived by prospective employers.

  Prepare a schedule for each of the three years

how much of the loss did you assign to the permanently restricted assets, and how much to the temporarily restricted assets? How can you justify this division of the loss?

  Determine the net present value of the investment

Determine the net present value of the investment in the machine.

  Compute the book value per share of common stock as of end

Use the information to Compute the book value per share of Common Stock as of end of the FY 2018: (Round your answer to the nearest penny.)

  Determine the markup percentage for product k

Determine the amount of desired profit from the production and sale of Product K. Determine the markup percentage for Product K.

  Explain at least two organizational policies

List and explain at least 2 Organizational Policies and Procedures And 2 Legal and Ethical requirements that we need to follow/be aware of when preparing

  How many minutes of mixing machine time would be required

A total of 7,750 minutes are available per month on these machines. How many minutes of mixing machine time would be required

  Determine the best investment opportunity to recommend

Synthesize results of analyses and computations to determine the best investment opportunity to recommend to the president of Donovan Enterprises.

  Determine what are the trends on a common-size basis

Determine What are the trends on a common-size basis? What would be your next steps in completing a thorough analysis of the trends?

  Find what was average cost per unit for direct materials

What is schedule of cost of goods manufactured in good form. What was the average cost per unit for direct materials? Determine the cost of goods sold.

  Create in journal form the entries necessary to record stock

Create in journal form the entries necessary to record the stock transactions of the Hamilton Corp. during 2019. July 1 Retired the remaining shares.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd