Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[The following information applies to the questions displayed below.) Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed

[The following information applies to the questions displayed below.) Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its average costs per unit are as follows: Average Cost per Unit. $ 8.80 Direct materials Direct labor $ 5.80 Variable manufacturing overhead $ 3.30 Fixed manufacturing overhead $ 6.80 Fixed selling expense $ 5.30 Fixed administrative expense $ 4.30 Sales commissions $ 2.80 Variable administrative expense $ 2.30 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 29,750 units? b. What is the total indirect manufacturing cost incurred to make 29,750 units? 2. Assume the cost object is the Manufacturing Department and its total output is 29,750 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 the company spent $127,925 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 29,750 units, what is the total direct selling expense readily traceable to individual sales representatives? b. When the company sells 29,750 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Safety Health And Environmental Auditing A Practical Guide

Authors: Simon Watson Pain

1st Edition

1439829470, 978-1439829479

More Books

Students also viewed these Accounting questions

Question

Does it exceed two pages in length?

Answered: 1 week ago

Question

Does it avoid typos and grammatical errors?

Answered: 1 week ago