Transcribed Image Text: Required information

Transcribed Image Text: Required information
Cost Classifications (Algo)
[The following information applies to the questions displayed below.]
Kubin Company’s relevant range of production is 1,000 to 14,000 units. When it produces and sells 12,500 units, its
average costs per unit are as follows:
Average Cost
per Unit
$ 7.20
$4.20
$ 1.70
$ 5.20
$ 3.70
$ 2.70
$ 1.20
$ 0.70
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Exercise 1-7 (Algo) Direct and Indirect Costs [LO1-1]
Required:
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 12,500 units?

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