Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 24,000 to 31,000 units. When it produces
Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 24,000 to 31,000 units. When it produces and sells 27,500 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $8.40 $5.40 $2.90 $6.40 $4.90 $3.90 $2.40 $1.90 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 27,500 units? b. What is the total indirect manufacturing cost incurred to make 27,500 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 27,500 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 $107,250 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 27.500 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 27,500 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 27,500 units? (Round per unit values to 2 decimal places.) b. What is the total indirect manufacturing cost incurred to make 27,500 units? (Round per unit values to 2 decimal places.) 1a. Direct materials per unit Direct labor per unit Direct manufacturing cost per unit Number of units sold Total direct manufacturing cost $ 0.00 $ 0 1b. Variable manufacturing overhead per unit Fixed manufacturing overhead per unit Indirect manufacturing cost per unit Number of units sold Total indirect manufacturing cost $ 0.00 0 Required Required 2 > 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 27,500 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? Show less 2a. Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit Total manufacturing cost per unit Number of units sold Total direct costs HA 0.00 $ 2b. Total indirect costs 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 $107,250 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 27,500 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 27,500 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? Show less 3a. Sales commissions per unit Number of units sold Total sales commission Fixed portion of sales representatives' compensation Total direct selling expense $ 0 $ 0 3b. The total indirect selling expense
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