Kubin Company's relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor 4.20 Variable manufacturing overhead 1.70 Fixed manufacturing overhead 5.20 Fixed selling expense 3.70 Fixed administrative expense $ 2.70 Sales commissions $ 1.20 Variable administrative expense $ 0.70 Required: 1. what is the total direct manufacturing cost incurred to make 12,500 units? 2 what is the total indirect manufacturing cost incurred to make 12,500 units? 3.Assume the cost object is the Manufacturing dept and its total output is $12,500 units. How much manufacturing cost is direct traceable to the manufacturing dept? and How much manufacturing cost is indirect traceable to the manufacturing dept? 4. Assume the cost object is the company's various sales. Assume the company spent $33,750 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 representative's compensation. When the company sells 12,500 units, what is the total direct selling expense that can be traced to individuals sales? When the company sells 12,500 units, what is the total indirect selling expense that can be traced to individuals' sales? %24 %24 %24 %24 %24 %24 %24 %24
Kubin Company's relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor 4.20 Variable manufacturing overhead 1.70 Fixed manufacturing overhead 5.20 Fixed selling expense 3.70 Fixed administrative expense $ 2.70 Sales commissions $ 1.20 Variable administrative expense $ 0.70 Required: 1. what is the total direct manufacturing cost incurred to make 12,500 units? 2 what is the total indirect manufacturing cost incurred to make 12,500 units? 3.Assume the cost object is the Manufacturing dept and its total output is $12,500 units. How much manufacturing cost is direct traceable to the manufacturing dept? and How much manufacturing cost is indirect traceable to the manufacturing dept? 4. Assume the cost object is the company's various sales. Assume the company spent $33,750 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 representative's compensation. When the company sells 12,500 units, what is the total direct selling expense that can be traced to individuals sales? When the company sells 12,500 units, what is the total indirect selling expense that can be traced to individuals' sales? %24 %24 %24 %24 %24 %24 %24 %24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:Kubin Company's relevant range of production is 11,000 to 14,000 units. When it produces and sells
12,500 units, its average costs per unit are as follows:
Average Cost per Unit
Direct materials
$
7.20
Direct labor
4.20
Variable manufacturing overhead
1.70
Fixed manufacturing overhead
5.20
Fixed selling expense
3.70
Fixed administrative expense
$
2.70
Sales commissions
$
1.20
Variable administrative expense
$
0.70
Required:
1. what is the total direct manufacturing cost incurred to make 12,500 units?
2 what is the total indirect manufacturing cost incurred to make 12,500 units?
3.Assume the cost object is the Manufacturing dept and its total output is $12,500 units. How much
manufacturing cost is direct traceable to the manufacturing dept? and How much manufacturing cost
is indirect traceable to the manufacturing dept?
4. Assume the cost object is the company's various sales. Assume the company spent $33,750 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 representative's compensation. When the
company sells 12,500 units, what is the total direct selling expense that can be traced to individuals
sales? When the company sells 12,500 units, what is the total indirect selling expense that can be
traced to individuals' sales?
%24
%24
%24
%24
%24
%24
%24
%24
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education