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Kubin Companys relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 units, its average costs per unit are as
Kubin Companys relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 units, its average costs per unit are as follows:
Average Cost per Unit | ||
Direct materials | $ | 8.10 |
Direct labor | $ | 5.10 |
Variable manufacturing overhead | $ | 2.60 |
Fixed manufacturing overhead | $ | 6.10 |
Fixed selling expense | $ | 4.60 |
Fixed administrative expense | $ | 3.60 |
Sales commissions | $ | 2.10 |
Variable administrative expense | $ | 1.60 |
Required:
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 23,000 units?
b. What is the total indirect manufacturing cost incurred to make 23,000 units?
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