Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required: 1. Assume the cost object is units of production: a. What Is the total direct manufacturing cost incurred to make 17,000 units? b. What

image text in transcribed
Required:
1. Assume the cost object is units of production:
a. What Is the total direct manufacturing cost incurred to make 17,000 units?
b. What is the total indirect manufacturing cost incurred to make 17,000 units?
2. Assume the cost object is the Manufacturing Department and that its total output is 17,000 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
$52,700 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 17,000 units, what is the total direct selling expense that can be readily traced to individual
sales representatives?
b. When the company sells 17,000 units, what is the total Indirect selling expense that cannot be readily traced to
individual sales representatives?
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Kubin Company's relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its average costs per unit are as follows: Average Cost per Unit $7.60 $4.60 Direct materials Direct labor $ 2.10 Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense $5.60 $ 4.10 $ 3.10 Fixed administrative expense Sales commissions $ 1.60 Variable administrative expense $ 1.10 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 17,000 units? b. What is the total indirect manufacturing cost incurred to make 17,000 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 17,000 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 $52,700 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 17,000 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 17,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? 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 17,000 units? (Round per unit values to 2 decimal places.) b. What is the total indirect manufacturing cost incurred to make 17,000 units? (Round per unit values to 2 decimal places.) 1a. Direct materials per unit $ 1a. Direct labor per unit 129,200.00 78,200.00 207,400.00 1a. Direct manufacturing cost per unit $ 1a. Number of units produced and sold 1a. Total direct manufacturing cost $ 0 1b. Variable manufacturing overhead per unit 1b. Fixed manufacturing overhead per unit 1b. Indirect manufacturing cost per unit 1b. Number of units produced and sold $ 0.00 $ 1b. Total indirect manufacturing cost 0 Required 1 Required 2 Required 3 2. Assume the cost object is the Manufacturing Department and that its total output is 17,000 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 A 2a. Direct materials per unit 2a. Direct labor per unit 2a. Variable manufacturing overhead per unit 2a. Fixed manufacturing overhead per unit 2a. Total manufacturing cost per unit $ 0.00 2a. Number of units produced and sold $ 0 2a. Total direct costs 2b, Total indirect costs Required 2 3. Assume the cost object is the company's various sales representatives. Furthermore, assume that the company spent $52,700 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 17,000 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 17,000 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 3a. Number of units sold 3a. Total sales commission. $ 0 3a. Fixed portion of sales representatives' compensation 3a. Total direct selling expense 0 3b. The 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_2

Step: 3

blur-text-image_3

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

Core Concepts Of Accounting Information Systems

Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman

11th Edition

9780470507025, 0470507020

More Books

Students also viewed these Accounting questions