Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kubin Companys relevant range of production is 10,000 to 12,000 units. When it produces and sells 11,000 units, its average costs per unit are as

Kubin Companys relevant range of production is 10,000 to 12,000 units. When it produces and sells 11,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.10 Direct labor $ 4.10 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 5.10 Fixed selling expense $ 3.60 Fixed administrative expense $ 2.60 Sales commissions $ 1.10 Variable administrative expense $ 0.60 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 11,000 units? b. What is the total indirect manufacturing cost incurred to make 11,000 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 11,000 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 companys various sales representatives. Furthermore, assume that the company spent $28,600 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 11,000 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 11,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

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

Systems Direct Auditing Practice Case IBM Book Workbook And 5.25 Disk

Authors: Dieter Weiss, Gaylord N. Smith

1st Edition

0538809051, 978-0538809054

More Books

Students also viewed these Accounting questions

Question

How can the acceptability of policy measures be increased?

Answered: 1 week ago

Question

My opinions/suggestions are valued.

Answered: 1 week ago