Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: . What is the incremental manufacturing cost incurred if the company increases production from 28,000 to 28,001 units? 2. What is the incremental cost incurred if the company increases production and sales from 28,000 to 28,001 units? $8.70 $ 5.70 3. Assume that Kubin Company produced 28,000 units and expects to sell 27,630 of them. If a new customer unexpectedly emerges and expresses interest in buying the 370 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 28,000 units and expects to sell 27,630 of them. If a new customer unexpectedly emerges and expresses interest in buying the 370 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? Required 1 $3.20 $6.70 $5.20 $4.20 $ 2.70 $ 2.20 Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 4 What is the incremental manufacturing cost incurred if the company increases production from 28,000 to 28,001 units? (Round your answer to 2 decimal places.)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
$8.70
$5.70
$3.20
$6.70
$5.20
$4.20
$2.70
$2.20
Required:
1. What is the incremental manufacturing cost incurred if the company increases production from 28,000 to 28,001 units?
2. What is the incremental cost incurred if the company increases production and sales from 28,000 to 28,001 units?
3. Assume that Kubin Company produced 28,000 units and expects to sell 27,630 of them. If a new customer unexpectedly emerges
and expresses interest in buying the 370 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 28,000 units and expects to sell 27,630 of them. If a new customer unexpectedly emerges
and expresses interest in buying the 370 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?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2 Required 3 Required 4
What is the incremental manufacturing cost incurred if the company increases production from 28,000 to 28,001 units?
(Round your answer to 2 decimal places.)
Total incremental manufacturing cost
Transcribed Image Text:Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $8.70 $5.70 $3.20 $6.70 $5.20 $4.20 $2.70 $2.20 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 28,000 to 28,001 units? 2. What is the incremental cost incurred if the company increases production and sales from 28,000 to 28,001 units? 3. Assume that Kubin Company produced 28,000 units and expects to sell 27,630 of them. If a new customer unexpectedly emerges and expresses interest in buying the 370 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 28,000 units and expects to sell 27,630 of them. If a new customer unexpectedly emerges and expresses interest in buying the 370 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the incremental manufacturing cost incurred if the company increases production from 28,000 to 28,001 units? (Round your answer to 2 decimal places.) Total incremental manufacturing cost
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