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and (3) indirect costs. b. Select the appropriate cost drivers for the first two indirect costs listed from the data above and allocate these costs
and (3) indirect costs. b. Select the appropriate cost drivers for the first two indirect costs listed from the data above and allocate these costs to Departments M and N based on the above breakdown of the resource usage. KKomer is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be KKomer also plans to add a new product line, Basehits, which will cost She will continue to sell the existing product, Noerrors, which costs KKomer believes that the salesperson will spend approximately $ 54,000 The booth will be open 135 hours during the trade show 810 per package $450 per package hours selling Noerrors and hours selling Basehits 45 Assume that the fixed costs will be allocated based on selling hours for each product. Hint Calculate fixed cost rate per hour so you can spread fixed costs to each product Required a. Determine the estimated total cost (including fxed and variable costs) and cost per unit of each product, assuming that the 360 units of Noerrors 225 units of Basehits b. Determine the estimated total cost (including fixed and variable costs) and cost per unit of each product, assuming that the 900 units of Noerrors 450 units of Basehits salesperson is able to sell salesperson is able to sell salesperson is able to sell salesperson is able to sell c. Explain why the cost per unit figures calculated in Requirement a are different from the amounts calculated in Requirement b. Also explain how the differences in estimated cost per unit will affect pricing decisions. Hernandez Delivery is a small company that transports business packages between New York and Chicago. It operates a fleet of small vans that moves packages to and from a central depot within
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