Answered step by step
Verified Expert Solution
Link Copied!

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.

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

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

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

Tracking Your Trek Looking Backward To Determine Your Forward

Authors: Erica Pauly

1st Edition

979-8839157330

More Books

Students also viewed these Accounting questions