Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

9 Part 1 of 4 5.86/6.25 points awarded Scored Kubin Company's relevant range of production is 12,000 to 16,000 units. When it produces and sells

9 Part 1 of 4 5.86/6.25 points awarded Scored Kubin Company's relevant range of production is 12,000 to 16,000 units. When it produces and sells 14,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $7.30 $ 4.30 $ 1.80 $5.30 $ 3.80 $ 2.80 $ 1.30 $0.80 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 14,000 units? b. What is the total indirect manufacturing cost incurred to make 14,000 units? 2. Assume the cost object is the Manufacturing Department and its total output is 14,000 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 the company spent $39,200 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 14,000 units, what is the total direct selling expense readily traceable to individual sales representatives? b. When the company sells 14,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
image text in transcribed
Kubin Company's felevant range of production is 12,000 to 16,000 units. When it produces and selis 14,000 unts, its average costs per unit are as follows: Required: 1. Assume the cost object is units of prodoction: a. What is the total direct manulacturing cost incurred to make 14,000 units? b. What is the sotal indirect manufacturing cost incurred to make 14,000 units? 2. Assume the cost object is the Manulacturing Department and its total output is 14,000 units a. How much total manufacturing cost is directly troceable to the Manufacturing Department? b. How much total manufacturing cost is an indiect cost that cannot be easily traced to the Manufocturing Department? 3. Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $39,200 of its fotal fixed seling expense on advertising and the cemsinder of the total fwed selling expepse comprised the fred portion of the campenys sales representatives' compensation. a. When the company sels 14,000 units, what is the total direct seling expense readily troceoble to individuat sales representatives? b. When the company sess 14,000 units, what is the total indirect selling expense that cannot be readiy traced to individual sales representathes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Practices In Local Governments An International Comparison

Authors: Laurence Ferry, Pasquale Ruggiero

1st Edition

180117086X, 978-1801170864

More Books

Students also viewed these Accounting questions

Question

Prepare and properly label figures and tables for written reports.

Answered: 1 week ago