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Required information Skip to question [ The following information applies to the questions displayed below. ] Kubin Companys relevant range of production is 15,000 to
Required information
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[The following information applies to the questions displayed below.]
Kubin Companys 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 | |
---|---|
Direct materials | $ 7.60 |
Direct labor | $ 4.60 |
Variable manufacturing overhead | $ 2.10 |
Fixed manufacturing overhead | $ 5.60 |
Fixed selling expense | $ 4.10 |
Fixed administrative expense | $ 3.10 |
Sales commissions | $ 1.60 |
Variable administrative expense | $ 1.10 |
- Assume the cost object is units of production:
- What is the total direct manufacturing cost incurred to make 17,000 units?
- What is the total indirect manufacturing cost incurred to make 17,000 units?
- Assume the cost object is the Manufacturing Department and its total output is 17,000 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?
- Assume the cost object is the companys various sales representatives. Furthermore, assume 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.
- When the company sells 17,000 units, what is the total direct selling expense readily traceable to individual sales representatives?
- When the company sells 17,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
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