Homework Help is Here – Start Your Trial Now!
Business
Accounting
Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21, 500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.00 Direct labor $ 5.00 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $ 6.00 Fixed selling expense $ 4.50 Fixed administrative expense $ 3.50 Sales commissions $ 2.00 Variable administrative expense $ 1.50 Required: Assume the cost object is units of production: What is the total direct manufacturing cost incurred to make 21, 500 units? What is the total indirect manufacturing cost incurred to make 21, 500 units? Assume the cost object is the Manufacturing Department and its total output is 21,500 units. How much total manufacturing cost is directly traceable to the Manufacturing Department? How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $75, 250 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. When the company sells 21,500 units, what is the total direct selling expense readily traceable to individual sales representatives? When the company sells 21, 500 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21, 500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.00 Direct labor $ 5.00 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $ 6.00 Fixed selling expense $ 4.50 Fixed administrative expense $ 3.50 Sales commissions $ 2.00 Variable administrative expense $ 1.50 Required: Assume the cost object is units of production: What is the total direct manufacturing cost incurred to make 21, 500 units? What is the total indirect manufacturing cost incurred to make 21, 500 units? Assume the cost object is the Manufacturing Department and its total output is 21,500 units. How much total manufacturing cost is directly traceable to the Manufacturing Department? How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $75, 250 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. When the company sells 21,500 units, what is the total direct selling expense readily traceable to individual sales representatives? When the company sells 21, 500 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
See similar textbooks
icon
Related questions
Question

A3

Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.00 Direct labor $ 5.00 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $ 6.00 Fixed selling expense $ 4.50 Fixed administrative expense $ 3.50 Sales commissions $ 2.00 Variable administrative expense $ 1.50 Required: Assume the cost object is units of production: What is the total direct manufacturing cost incurred to make 21, 500 units? What is the total indirect manufacturing cost incurred to make 21, 500 units? Assume the cost object is the Manufacturing Department and its total output is 21, 500 units. How much total manufacturing cost is directly traceable to the Manufacturing Department? How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $75, 250 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. When the company sells 21, 500 units, what is the total direct selling expense readily traceable to individual sales representatives? When the company sells 21, 500 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
Transcribed Image Text:Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.00 Direct labor $ 5.00 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $ 6.00 Fixed selling expense $ 4.50 Fixed administrative expense $ 3.50 Sales commissions $ 2.00 Variable administrative expense $ 1.50 Required: Assume the cost object is units of production: What is the total direct manufacturing cost incurred to make 21, 500 units? What is the total indirect manufacturing cost incurred to make 21, 500 units? Assume the cost object is the Manufacturing Department and its total output is 21, 500 units. How much total manufacturing cost is directly traceable to the Manufacturing Department? How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $75, 250 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. When the company sells 21, 500 units, what is the total direct selling expense readily traceable to individual sales representatives? When the company sells 21, 500 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS