Northeast Hospital's Radiology Department is considering replacing an old inefficient Xray machine with a state-of-the-art digital X-ray machine. The new machine would provide higher quality Xrays in less time and at a lower cost per Xray. It would also require less power and would use a color laser printer to produce easily readable X-ray images. Instead of investing the funds in the new Xray machine, the Laboratory Department is lobbying the hospital's management to buy a new DNA analyzer. Required: Classify each item as a differential cost, a sunk cost, or an opportunity cost in the decision to replace the old Xray machine with a new machine. If none of the categories apply for a particular item, select \"None\". Cost ofXray lm used in the old machine Cost ofthe old X ray machine The salary of the head of the Radiology Department The salary of the head of the Laboratory Department . Cost ofthe newI color laser printer Differential Coat Differential Cost . Rent on the space occupied by Radiology Opportunity Cost . The cost of maintaining the old machine Sunk Cost: . Benets from a new DNA analyzer . Cost of electricity to mn the Xray machines None Kubin Company's 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 $ B . 10 Direct labor 5 5.10 Variable manufacturing overhead 3 2 . 60 Fixed manufacturing overhead 5 6 . 10 Fixed selling expense $ 4 . 60 Fixed administrative expense 5 3 . 60 Sales emissions 5 2 . 10 Variable administrative expense 5 1 . 60 Required: 1. Assume the cast 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? 2. Assume the cast object is the Manufacturing Department and that its total output is 23,000 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 $82,800 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 23,000 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 23,000 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 23,000 units? (Round per unit values to 2 decimal places.) b. What is the total indirect manufacturing cost incurred to make 23,000 units? (Round per unit values to 2 decimal places.) 1a. Direct materials per unit Direct labor per unit Direct manufacturing cost per unit 0.00 Number of units sold Total direct manufacturing cost 0 1b. Variable manufacturing overhead per unit Fixed manufacturing overhead per unit Indirect manufacturing cost per unit 0.00 Number of units sold Total indirect manufacturing cost 02. Assume the cast object is the Manufacturing Department and that It: total output is 23,000 units. a. How much total manufacturing cost Is directly tumble to the Manufacturing Department? (Round per unit values to 2 decimal places.) I}. How much total manufacturing not Is an indirect cost that cannot be easily traced to the Manufacturing Department? Show IessA 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 oi units sold Total direct omits 2b. Total indirect costs Required 1 Required 2 Required 3 3. Assume the cost object is the company's various sales representatives. Furthermore, assume that the company spent $82,800 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 23,000 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 23,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? Show less A 3a. Sales commissions per unit Number of units sold Total sales commission Fixed portion of sales representatives' compensation Total direct selling expense 3b. The total indirect selling expense
