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Kubin Company's relevant range of production is 24,000 to 31,000 units. When it produces and sells 27,500 units, its average costs per unit are as

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Kubin Company's relevant range of production is 24,000 to 31,000 units. When it produces and sells 27,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.40 Direct labor $ 5. 40 Variable manufacturing overhead $ 2. 90 Fixed manufacturing overhead $ 6.40 Fixed selling expense $ 4.90 Fixed administrative expense $ 3.90 Sales commissions $ 2.40 Variable administrative expense $ 1.90 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 27,500 units? b. What is the total indirect manufacturing cost incurred to make 27,500 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 27,500 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 $107,250 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 27,500 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 27,500 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. Required 1 Required 2 Required 3 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 27,500 units? b. What is the total indirect manufacturing cost incurred to make 27,500 units? Note: For all the requirements, round per unit values to 2 decimal places. Show less A 1a. Direct material cost per unit 1a. Direct labor cost per unit 1a. Direct manufacturing cost per unit $ 0.00 1a. Number of units produced and sold 1a. Total direct manufacturing cost $ 1b. Variable manufacturing overhead per unit 1b. Fixed manufacturing overhead per unit 1b. Indirect manufacturing cost per unit $ 0.00

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