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 17,000 to 26,500 units.

image text in transcribedimage text in transcribedimage text in transcribedimage 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 17,000 to 26,500 units. When it produces and sells 21,750 units, its average costs per unit are as follows: Average Cost per Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Unit $ 7.80 $ 4.80 $ 2.30 $5.80 $4.38 Fixed administrative expense $ 3.30 Sales commissions $ 1.80 Variable administrative expense $ 1.30 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 21,750 units? b. What is the total indirect manufacturing cost incurred to make 21,750 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 21,750 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 $71,775 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 21,750 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 21,750 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 21,750 units? b. What is the total indirect manufacturing cost incurred to make 21,750 units? Note: For all the requirements, round per unit values to 2 decimal places. 1a. Direct material cost per unit 1a. Direct labor cost per unit Show les 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 21,750 units? b. What is the total indirect manufacturing cost incurred to make 21,750 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 21,750 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 $71,775 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 21,750 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 21,750 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 21,750 units? b. What is the total indirect manufacturing cost incurred to make 21,750 units? Note: For all the requirements, round per unit values to 2 decimal places. 1a. Direct material cost per unit 1a. Direct labor cost per unit 1a. Direct manufacturing cost per unit $ 0.00 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 $ 0.00 1b. Number of units produced and sold 1b. Total indirect manufacturing cost $ Required 1 Required 2 > Show less 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 21,750 units? b. What is the total indirect manufacturing cost incurred to make 21,750 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 21,750 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 $71,775 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 21,750 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 21,750 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 2. Assume the cost object is the Manufacturing Department and that its total output is 21,750 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? 2a. Direct material cost per unit 2a. Direct labor cost per unit 2a. Variable manufacturing overhead per unit 2a. Fixed manufacturing overhead per unit 2a. Total manufacturing cost per unit 2a. Number of units produced and sold 2a. Total direct costs 2b. Total indirect costs $ 0.00 $ 0 Show less Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 21,750 units? b. What is the total indirect manufacturing cost incurred to make 21,750 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 21,750 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 $71,775 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 21,750 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 21,750 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 3. Assume the cost object is the company's various sales representatives. Furthermore, assume that the company spent $71,775 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 21,750 units, what is the total direct selling expense that can be readily traced to individual sa representatives? (Round per unit value to 2 decimal places.) b. When the company sells 21,750 units, what is the total indirect selling expense that cannot be readily traced to individu sales representatives? 3a. Sales commissions per unit 3a. Number of units sold 3a. Total sales commission $ 3a. Fixed portion of sales representatives' compensation 3a. Total direct selling expense $ 3b. The total indirect selling expense Required 2 Show les

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Study Guide To Accompany Fundamentals Of Corporate Finance

Authors: Richard Brealey, Stewart Myers, Alan Marcus

5th Edition

0073012424, 9780073012421

Students also viewed these Accounting questions

Question

What elements of multimedia-based instruction facilitate learning?

Answered: 1 week ago

Question

What is the point of the autllors' drunkdnvlng analogy?

Answered: 1 week ago