Kubin Company’s relevant range of production is 13,000 to 18,000units. When it produces and sells 15,500 units, its average costsper unit are as follows: Average Cost per Unit Direct materials $7.40 Direct labor $ 4.40 Variable manufacturing overhead $ 1.90Fixed manufacturing overhead $ 5.40 Fixed selling expense $ 3.90Fixed administrative expense $ 2.90 Sales commissions $ 1.40Variable administrative expense $ 0.90 Required: 1. Assume the costobject is units of production: a. What is the total directmanufacturing cost incurred to make 15,500 units? b. What is thetotal indirect manufacturing cost incurred to make 15,500 units? 2.Assume the cost object is the Manufacturing Department and that itstotal output is 15,500 units. a. How much total manufacturing costis directly traceable to the Manufacturing Department? b. How muchtotal manufacturing cost is an indirect cost that cannot be easilytraced to the Manufacturing Department? 3. Assume the cost objectis the company’s various sales representatives. Furthermore, assumethat the company spent $44,950 of its total fixed selling expenseon advertising and the remainder of the total fixed selling expensecomprised the fixed portion of the company's sales representatives’compensation. a. When the company sells 15,500 units, what is thetotal direct selling expense that can be readily traced toindividual sales representatives? b. When the company sells 15,500units, what is the total indirect selling expense that cannot bereadily traced to individual sales representatives?
