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Kubin Companys 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

Kubin Companys 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 $ 7.00
Direct labor $ 4.00
Variable manufacturing overhead $ 1.50
Fixed manufacturing overhead $ 5.00
Fixed selling expense $ 3.50
Fixed administrative expense $ 2.50
Sales commissions $ 1.00
Variable administrative expense $ 0.50

Required:

1. 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?

2. 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?

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 $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?

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

1. Assume the cost object is units of production:

a. What is the total direct manufacturing cost incurred to make 20,000 units? (Round per unit values to 2 decimal places.)

b. What is the total indirect manufacturing cost incurred to make 20,000 units? (Round per unit values to 2 decimal places.)

1a. Direct materials per unit $7.00selected answer correct
Direct labor per unit 4.00selected answer correct
Direct manufacturing cost per unit $11.00
Number of units sold 20,000selected answer correct
Total direct manufacturing cost $220,000
1b. Variable manufacturing overhead per unit $1.50selected answer correct
Fixed manufacturing overhead per unit 5.00selected answer correct
Indirect manufacturing cost per unit $6.50
Number of units sold 20,000selected answer correct
Total indirect manufacturing cost $130,000

2. 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? (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?

Show less

2a. Direct materials per unit $7.00selected answer correct
Direct labor per unit 4.00selected answer correct
Variable manufacturing overhead per unit 1.50selected answer correct
Fixed manufacturing overhead per unit not attempted
Total manufacturing cost per unit $12.50
Number of units sold 20,000selected answer correct
Total direct costs $250,000
2b. Total indirect costs not attempted

3. Assume the cost object is the companys 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? (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

3a. Sales commissions per unit $20,000.00selected answer incorrect
Number of units sold 1selected answer incorrect
Total sales commission $20,000
Fixed portion of sales representatives compensation not attempted
Total direct selling expense $20,000
3b. The total indirect selling expense not attempted

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