Question
A company provided the following information on the average cost per unit: Direct materials $30.00 Direct labour $20.00 Variable manufacturing overhead $5.00 Fixed manufacturing costs
A company provided the following information on the average cost per unit:
Direct materials | $30.00 |
Direct labour | $20.00 |
Variable manufacturing overhead | $5.00 |
Fixed manufacturing costs | $8.00 |
fixed selling expenses | $6.00 |
Fixed administrative expenses | $7.00 |
Sales commissions | $4.00 |
Variable administrative expenses | $3.00 |
Total fixed selling expenses are allocated as follows:
$125,000 in promotions and the rest in sales salaries
If the company uses sales representatives as a cost object and sells 50,000 units, calculate direct selling expenses are and indirect selling expenses.
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
26th edition
128574361X, 978-1305446052, 1305446054, 978-1285743615
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