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[ The following information applies to the questions displayed below. ] Kubin Company s relevant range of production is 2 4 , 0 0 0
The following information applies to the questions displayed below.
Kubin Companys relevant range of production is to units. When it produces and sells units, its average costs per unit are as follows:
Average Cost per Unit
Direct materials $
Direct labor $
Variable manufacturing overhead $
Fixed manufacturing overhead $
Fixed selling expense $
Fixed administrative expense $
Sales commissions $
Variable administrative expense $
Required:
Assume the cost object is units of production:
What is the total direct manufacturing cost incurred to make units?
What is the total indirect manufacturing cost incurred to make units?
Assume the cost object is the Manufacturing Department and its total output is 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 $ 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 units, what is the total direct selling expense readily traceable to individual sales representatives?
When the company sells units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
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