Kubin Company's relevant range of production is 19,000 to 20,000 units. When it produces and...
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Kubin Company's relevant range of production is 19,000 to 20,000 units. When it produces and sells 19,500 units, its average costs per unit are as follows: Average Cost per Unit $7.90 $4.90 $2.40 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $5.90 $4.40 $3.40 $1.90 $1.40 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 19,500 units? I indirect manufacturing cost incurred to make 19,500 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 19,500 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 $66,300 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 19,500 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 19,500 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 Required Required 2 3 3. Assume the cost object is the company's various sales representatives. Furthermore, assume that the company spent $66,300 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 19,500 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 19,500 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 $ 1.90 19,500 $ 37,050 19,500 $ 56,550
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