Kubin Company’s relevant range of production is 22,000 to 27,000 units. When it produces and sells 24,500 units, its average costs per unit are as follows:

 	Average Cost per Unit
Direct materials	$ 8.20
Direct labor	$ 5.20
Variable manufacturing overhead	$ 2.70
Fixed manufacturing overhead	$ 6.20
Fixed selling expense	$ 4.70
Fixed administrative expense	$ 3.70
Sales commissions	$ 2.20
Variable administrative expense	$ 1.70 If 22,000 units are produced, what is the total fixed manufacturing overhead incurred to support this level of production?

To determine the total fixed manufacturing overhead incurred when 22,000 units are produced, it's essential to understand that fixed costs do not vary with the level of production within the relevant range. In this case, the total fixed manufacturing overhead is constant, regardless of the number of units produced, as long as it remains within the relevant range of 22,000 to 27,000 units.

The fixed manufacturing overhead per unit is provided as $6.20 when 24,500 units are produced. Therefore, the total fixed manufacturing overhead can be calculated by multiplying the fixed cost per unit by the number of units at that production level.

### Step-by-Step Calculation:

1. **Fixed manufacturing overhead per unit** = $6.20 (given for 24,500 units).
2. **Total fixed manufacturing overhead** = Fixed manufacturing overhead per unit × Number of units produced.

Thus, for 24,500 units:
\[
\text{Total fixed manufacturing overhead} = 6.20 \times 24,500 = 151,900
\]

Since fixed costs do not change with production levels within the relevant range, the total fixed manufacturing overhead for 22,000 units would still be **$151,900**.

### Answer:
The total fixed manufacturing overhead incurred to support the production of 22,000 units is **$151,900**.

Do you want more details or have any questions about this problem? Here are some related questions:

1. How does the concept of the relevant range affect fixed costs in budgeting?
2. What would happen to the average fixed cost per unit if production increased to 27,000 units?
3. How do variable costs differ from fixed costs, and why is it important to distinguish between them?
4. How can understanding fixed and variable costs help in pricing decisions?
5. If the company produces only 20,000 units (below the relevant range), how would that affect fixed overhead allocation per unit?

**Tip:** Understanding the distinction between fixed and variable costs is crucial for analyzing the cost structure and making informed business decisions.

Kubin Company’s relevant range of production is 22,000 to 27,000 units. When it produces and sells 24,500 units, its average costs per unit are as follows:

Direct materials $8.20
Direct labor $5.20
Variable manufacturing overhead $2.70
Fixed manufacturing overhead $6.20
Fixed selling expense $4.70
Fixed administrative expense $3.70
Sales commissions $2.20
Variable administrative expense $1.70

If 22,000 units are produced, what is the total fixed manufacturing overhead incurred to support this level of production?

Understand how to calculate Kubin Company's total fixed manufacturing overhead for 22,000 units of production. Learn about fixed costs, relevant range, and cost accounting principles. The solution includes detailed calculations and explanations for managerial accounting students.

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