ALL ONE QUESTION, 3 PARTS Kubin Companys relevant range of production is 22,000 to 27,000...
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Accounting
ALL ONE QUESTION, 3 PARTS
Kubin Companys relevant range of production is 22,000 to 27,000 units. When it produces and sells 24,500 units, its average costs per unit are as follows:
Average Cost per Unit | ||
Direct materials | $ | 8.20 |
Direct labor | $ | 5.20 |
Variable manufacturing overhead | $ | 2.70 |
Fixed manufacturing overhead | $ | 6.20 |
Fixed selling expense | $ | 4.70 |
Fixed administrative expense | $ | 3.70 |
Sales commissions | $ | 2.20 |
Variable administrative expense | $ | 1.70 |
Required:
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 24,500 units?
b. What is the total indirect manufacturing cost incurred to make 24,500 units?
2. Assume the cost object is the Manufacturing Department and that its total output is 24,500 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 companys various sales representatives. Furthermore, assume that the company spent $90,650 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 24,500 units, what is the total direct selling expense that can be readily traced to individual sales representatives?
b. When the company sells 24,500 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 24,500 units? (Round per unit values to 2 decimal places.)
b. What is the total indirect manufacturing cost incurred to make 24,500 units? (Round per unit values to 2 decimal places.)
|
2. Assume the cost object is the Manufacturing Department and that its total output is 24,500 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?
|
Required 3
3. Assume the cost object is the companys various sales representatives. Furthermore, assume that the company spent $90,650 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 24,500 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 24,500 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
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