LO 5 Part 1 of 21 Required information [The following information applies to the questions displayed...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
LO 5 Part 1 of 21 Required information [The following information applies to the questions displayed below.) Kubin Company's 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: 142 points Average Cost per Dait Direct materials $7.00 Direct labor $4.00 Variable manufacturing overhead $1.50 to Fixed manufacturing overhead $5.00 Book Fixed selling expense $3.50 Fixed administrative expense $2.50 Sales commissions $1.00 Pine Variable administrative expense $0.50 References 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 company's 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? < Prev 5 6 Next > LO 5 Part 1 of 21 Required information [The following information applies to the questions displayed below.) Kubin Company's 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: 142 points Average Cost per Dait Direct materials $7.00 Direct labor $4.00 Variable manufacturing overhead $1.50 to Fixed manufacturing overhead $5.00 Book Fixed selling expense $3.50 Fixed administrative expense $2.50 Sales commissions $1.00 Pine Variable administrative expense $0.50 References 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 company's 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? < Prev 5 6 Next >
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
(a) How do the components of revenues and expenses differ between a merchandising company and a service enterprise? (b) Explain the income measurement process of a merchandising company.
-
If you heard from an employee of a local bank that its a tradition here for us to stand up and defend the bank when someone criticizes it, you could assume that the bank employees had strong...
-
1. Four social inventions that support markets are (1) ______, which specify the terms of exchange; (2) ______, which reduce the risk of entrepreneurs; (3) ______, which increases the profitability...
-
At the end of 2021, Your Company decided to issue a 5% stock dividend. At the time of issue, the market price of the stock was $15 per share. Prior to the dividend, the stockholders' equity accounts...
-
I El Evento A tiene 8 elementos pero dos de ellos, estn, tambin, en B. Con ellos el Evento B tiene 10 elementos. Hay 4 elementos que no estn ni en A ni en B. 1) Dibuja el diagrama de Venn 2)...
-
In January 2021 Katrina buys an item of movable plant and machinery for use in her business. The plant costs her 50,000 and capital allowances are claimed. Compute the chargeable gain arising in...
-
On 1 May 2015, Edward paid 350,000 to buy a 20-year lease on a flat. On 1 November 2023 he granted a 5-year sub-lease on the flat to Petronella for 150,000. The flat was never Edward's principal...
-
Stephen begins trading on 1 January 2023, preparing accounts to 31 December each year. His adjusted trading profit (before deducting capital allowances) is 21,000 for the year to 31 December 2023...
-
Raymond started trading on 1 October 2022. He chose 31 March as his accounting date and his first accounts were for the period from 1 October 2022 to 31 March 2023. His purchases and sales of plant...
-
Discuss the relationship between language and culture.
-
Why is it disadvantageous to the economy to just hand out money to people? Think about some of the properties that we mentioned that money must have. Think about some of those qualities that money...
-
Assume Polands currency (the zloty) is worth $.17 and the Japanese yen is worth $.008. What is the cross rate of the zloty with respect to yen? That is, how many yen equal a zloty?
-
Fullerton Bank quotes an ask rate of $.190 for the Peruvian currency (new sol) and a bid rate of $.188. Determine the bid/ask percentage spread.
-
What is the value of a put option if the underlying stock price is $60, the strike price is $65, the underlying stock volatility is 25 percent, and the risk-free rate is 5 percent? Assume the option...
Study smarter with the SolutionInn App