Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kubin Company's relevant range of production is 26,000 to 35,500 units. When it produces and sells 30,750 units, its average costs per unit are as

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Kubin Company's relevant range of production is 26,000 to 35,500 units. When it produces and sells 30,750 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $8.60 $ 5.60 $ 3.10 $ 6.60 $5.10 $4.10 $ 2.60 $ 2.10 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 30.750 units? b. What is the total indirect manufacturing cost incurred to make 30.750 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 30,750 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 $126.075 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 30.750 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 30.750 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 2. Assume the cost object is the Manufacturing Department and that its total output is 30,750 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 Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit Total manufacturing cost per unit Number of units sold Total direct costs 2b. Total indirect costs 13 Complete this question by entering your answers in the tabs below. Bints Required 1 Required 2 Required 3 eBook 1. Assu... wust object is units of production: a. What is the total direct manufacturing cost incurred to make 30,750 units? (Round per unit values to 2 decimal places.) b. What is the total indirect manufacturing cost incurred to make 30,750 units? (Round per unit values to 2 decimal places.) References 1a. Direct materials per unit Direct labor per unit Direct manufacturing cost per unit Number of units sold Total direct manufacturing cost 1b. Variable manufacturing overhead per unit Fixed manufacturing overhead per unit Indirect manufacturing cost per unit Number of units sold Total Indirect manufacturing cos! Required Required 2 > Required 1 Required 2 Required 3 3. Assume the cost object is the company's various sales representatives. Furthermore, assume that the company spent $126,075 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 30,750 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 30,750 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? Show less 3a. Sales commissions per unit Number of units sold Total sales commission Fixed portion of sales representatives' compensation Total direct selling expense 3b. Total Indirect selling expense

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

Finance For Housing An Introduction

Authors: Cathy Davis

1st Edition

1447306481, 978-1447306481

More Books

Students also viewed these Finance questions