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?

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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?

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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