Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information Cost Classifications (Algo) [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 15,000 to 19,000 units.
Required information Cost Classifications (Algo) [The following information applies to the questions displayed below.] 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: Exercise 1-7 (Algo) Direct and Indirect Costs [LO1-1] 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 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? Note: For all the requirements, round per unit values to 2 decimal places. 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 traceble to the Manufacturing Department? (Round per unit values to 2 decimal places.) b. How much total manufacturing cost is an indirect cost that cannohoe 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? (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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started