Required information

Skip to question

$[$The following information applies to the questions displayed below.$]$

Kubin Company$$s relevant range of production is $18,000$ to $22,000$ units. When it produces and sells $20,000$ units, its average costs per unit are as follows:

Average Cost per Unit

Direct materials $ $7\mathrm{.}00$

Direct labor $ $4\mathrm{.}00$

Variable manufacturing overhead $ $1\mathrm{.}50$

Fixed manufacturing overhead $ $5\mathrm{.}00$

Fixed selling expense $ $3\mathrm{.}50$

Fixed administrative expense $ $2\mathrm{.}50$

Sales commissions $ $1\mathrm{.}00$

Variable administrative expense $ $0\mathrm{.}50$

Required:

Assume the cost object is units of production:

What is the total direct manufacturing cost incurred to make $20,000$ units?

What is the total indirect manufacturing cost incurred to make $20,000$ units?

Assume the cost object is the Manufacturing Department and its total output is $20,000$ units.

How much total manufacturing cost is directly traceable to the Manufacturing Department?

How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?