2. Prepare a contribution om me . EXERCISE 1-7 Direct and Indirect Costs LO1-1 Rubin Company's relevant range of production is 18,000 to 22.000 units. When it produces and som 20,000 units, its average costs per unit are as follows: EXERCISE 1-10 D beds a Costs and Sunk Exercise 1-1 Answer Average Cost per Unit Required What is the incremental manufacturing cos to 20.00 units 2 What is the incremental cost incurred if Direct materials... Direct labor... Variable manufacturing overhead Fixed manufacturing overhead.. Fixed selling expense... Fixed administrative expense.... Sales commissions ..... Variable administrative expense... $7.00 $4.00 $1.50 $5.00 $3.50 $2.50 $1.00 $0.50 3. Assume that Kubin Company produced customer unexpectedly emerges and been produced by the company and the manufacturing cost per unit incurred to + Assume that Kabin Company produce customer unexpectedly emerges and en produced by the company and that w administrative cost per unit is incurred EXERCISE 1-11 Cost Behavior: Contrib Harris Company manufactures and seils total costs and costs per unit over the rele . Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 20,000 units? b. What is the total indirect manufacturing cost incurred to make 20,000 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 20,000 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? 3. Assume the cost object is the company's various sales representatives. Furthermore, assume that the company spent $50,000 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives compensation. a. When the company sells 20.000 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 20.000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? 4. Are Kubin's administrative expenses always going to be treated as indirect costs in its internal management reports? Total costs: Variable cost. Fixed cost.. Total cost Costs per unit Variable cost Fixed cost. Total cost per unit Managerial Accounting and Cost Concepts EXERCISE 1-8 Product Costs and Period Costs; Variable and Fixed Costs LO1-3, LO1-4 Refer to the data given in Exercise 1-7. Answer all questions independently. Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 20.000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 22.000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 18.000 units? EXERCISE 1-9 Fixed, Variable, and Mixed Costs LO1-4 Refer to the data given in Exercise 1-7. Answer all questions independently. Required: 1. If 18,000 units are produced and sold, what is the variable cost per unit produced and sold? wolle dered and sold