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?

Note: For all the requirements, round per unit values to $2$ decimal places.

Show less

$\backslash$table$[[1$a$.$ Direct material cost per unit,,$],[1$a$.$ Direct labor cost per unit,,$],[1$a$.$ Direct manufacturing cost per unit,$$,0\mathrm{.}00],[1$a$.$ Number of units produced and sold,,$],[1$a$.$ Total direct manufacturing cost,$$,0],[1$b$.$ Variable manufacturing overhead per unit,,$],[1$b$.$ Fixed manufacturing overhead per unit,,$],[1$b$.$ Indirect manufacturing cost per unit,$$,0\mathrm{.}00],[1$b$.$ Number of units produced and sold,,$],[1$b$.$ Total indirect manufacturing cost,$$,0]]$ 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?

Note: Round per unit values to $2$ decimal places.

b$.$ How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? 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?

Note: Round per unit value to $2$ decimal places.

b$.$ When the company sells $20,000$ units, what is the total indirect selling expense that cannot be readily traced to individual

sales representatives?

Show less

$3$b$.$ The total indirect selling expense Required information

$[$The following information applies to the questions displayed below.$]$

Kubin Company's relevant range of production is $18,000$ to $22,000$ units. When it produces and sells $20,000$ units, its

average costs per unit are as follows:

Required:

For financial accounting purposes, what is the total amount of product costs incurred to make $20,000$ units?

For financial accounting purposes, what is the total amount of period costs incurred to sell $20,000$ units?

For financial accounting purposes, what is the total amount of product costs incurred to make $22,000$ units?

For financial accounting purposes, what is the total amount of period costs incurred to sell $18,000$ units?

Note: For all requirements, do not round intermediate calculations.Assume the cost object is units of production:

What is the total direct manufacturing cost incurred to make $20,000$ units?

What is the total indirect manufacturing cost incurred to make $20,000$ units?Required information

Skip to question

$[$The following information applies to the questions displayed below.$]$

Kubin Company$$s relevant range of production is $18,000$ to $22,000$ units. When it produces and sells $20,000$ units, its average costs per unit are as follows:

Average Cost per Unit

Direct materials $ $7\mathrm{.}00$

Direct labor $ $4\mathrm{.}00$

Variable manufacturing overhead $ $1\mathrm{.}50$

Fixed manufacturing overhead $ $5\mathrm{.}00$

Fixed selling expense $ $3\mathrm{.}50$

Fixed administrative expense $ $2\mathrm{.}50$

Sales commissions $ $1\mathrm{.}00$

Variable administrative expense $ $0\mathrm{.}50$

Required:

What is the incremental manufacturing cost incurred if the company increases production from $20,000$ to $20,001$ units?

What is the incremental cost incurred if the company increases production and sales from $20,000$ to $20,001$ units?

Assume that Kubin Company produced $20,000$ units and expects to sell $19,800$ of them. If a new customer unexpectedly emerges and expresses interest in buying the $200$ extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer?

Assume that Kubin Company produced $20,000$ units and expects to sell $19,800$ of them. If a new customer unexpectedly emerges and expresses interest in buying the $200$ extra units that have been pr

Assume the cost object is the Manufacturing Department and that its total output is $20,000$ units.

How much total manufacturing cost is directly traceable to the Manufacturing Department?

How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?

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.

When the company sells $20,000$ units, what is the total direct selling expense that can be readily traced to individual sales representatives?

When the company sells $20,000$ units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?