Cost Classifications (Algo) Skip to question [The following information applies to the questions displayed below.] Kubin Companys relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.70 Direct labor $ 5.70 Variable manufacturing overhead $ 3.20 Fixed manufacturing overhead $ 6.70 Fixed selling expense $ 5.20 Fixed administrative expense $ 4.20 Sales commissions $ 2.70 Variable administrative expense $ 2.20 Exercise 1-7 (Algo) Direct and Indirect Costs [LO1-1] Required: Assume the cost object is units of production: What is the total direct manufacturing cost incurred to make 28,000 units? What is the total indirect manufact
Required information Cost Classifications (Algo) [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as follows: Exercise 1-7 (Algo) Direct and Indirect Costs [LO1-1] Required: Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 28,000 units? b. What is the total indirect manufacturing cost incurred to make 28,000 units? Assume the cost object is the Manufacturing Department and that its total output is 28,000 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? Assume the cost object is the company's various sales representatives. Furthermore, assume that the company spent $117,600 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 28,000 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 28,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? Complete this question by entering your answers in the tabs below. 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 28,000 units? b. What is the total indirect manufacturing cost incurred to make 28,000 units? Note: For all the requirements, round per unit values to 2 decimal places. Cost Classifications (Algo) [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as follows: Exercise 1-7 (Algo) Direct and Indirect Costs [LO1-1] Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 28,000 units? b. What is the total indirect manufacturing cost incurred to make 28,000 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 28,000 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 $117,600 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 28,000 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 28,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? Complete this question by entering your answers in the tabs below. 2. Assume the cost object is the Manufacturing Department and that its total output is 28,000 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? Required information Cost Classifications (Algo) [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as follows: Exercise 1-7 (Algo) Direct and Indirect Costs [LO1-1] Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 28,000 units? b. What is the total indirect manufacturing cost incurred to make 28,000 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 28,000 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 $117,600 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 28,000 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 28,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? Complete this question by entering your answers in the tabs below. 3. Assume the cost object is the company's various sales representatives. Furthermore, assume that the company spent $117,600 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 28,000 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 28,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives
