Kubin Companys relevant range of production is 28,000 to 31,500 units. When it produces and...
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Accounting
Kubin Companys 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 | ||
| Direct materials | $ | 8.80 |
| 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:
b. What is the total indirect manufacturing cost incurred to make 29,750 units?
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