Required 1 Required 2 Required 3 3. Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $50,000 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 20,000 units, what is the total direct selling expense readily traceable to individual sales representatives? Note: Round per unit value to 2 decimal places. b. When the company sells 20,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? 3a. Sales commissions per unit 3a. Number of units sold 3a. Total sales commission 3a. Fixed portion of sales representatives' compensation 3a. Total direct selling expense 3b. The total indirect selling expense $ 0 Show less
Required 1 Required 2 Required 3 3. Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $50,000 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 20,000 units, what is the total direct selling expense readily traceable to individual sales representatives? Note: Round per unit value to 2 decimal places. b. When the company sells 20,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? 3a. Sales commissions per unit 3a. Number of units sold 3a. Total sales commission 3a. Fixed portion of sales representatives' compensation 3a. Total direct selling expense 3b. The total indirect selling expense $ 0 Show less
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its
average costs per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Average
Cost per
Unit
$ 7.00
$ 4.00
$ 1.50
Exercise 1-7 (Static) Direct and Indirect Costs [LO1-1]
Required:
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 20,000 units?
b. What is the total indirect manufacturing cost incurred to make 20,000 units?
$5.00
$ 3.50
$ 2.50
2. Assume the cost object is the Manufacturing Department and its total output is 20,000 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?
Required 1 Required 2 Required 3
$ 1.00
$ 0.50
3. Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $50,000 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 20,000 units, what is the total direct selling expense readily traceable to individual sales
representatives?
b. When the company sells 20,000 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.
3a. Sales commissions per unit
3a. Number of units sold
3a. Total sales commission
3a. Fixed portion of sales representatives' compensation
3a. Total direct selling expense
3b. The total indirect selling expense
3. Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $50,000
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 20,000 units, what is the total direct selling expense readily traceable to individual sales
representatives?
Note: Round per unit value to 2 decimal places.
b. When the company sells 20,000 units, what is the total indirect selling expense that cannot be readily traced to individual
sales representatives?
$
$
0
Show less A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F669ec87d-254c-49fb-be1e-01d98ce0e405%2F838073b6-32c8-41fb-8af2-7d6f6a85baf6%2Fc0wmvu_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its
average costs per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Average
Cost per
Unit
$ 7.00
$ 4.00
$ 1.50
Exercise 1-7 (Static) Direct and Indirect Costs [LO1-1]
Required:
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 20,000 units?
b. What is the total indirect manufacturing cost incurred to make 20,000 units?
$5.00
$ 3.50
$ 2.50
2. Assume the cost object is the Manufacturing Department and its total output is 20,000 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?
Required 1 Required 2 Required 3
$ 1.00
$ 0.50
3. Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $50,000 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 20,000 units, what is the total direct selling expense readily traceable to individual sales
representatives?
b. When the company sells 20,000 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.
3a. Sales commissions per unit
3a. Number of units sold
3a. Total sales commission
3a. Fixed portion of sales representatives' compensation
3a. Total direct selling expense
3b. The total indirect selling expense
3. Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $50,000
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 20,000 units, what is the total direct selling expense readily traceable to individual sales
representatives?
Note: Round per unit value to 2 decimal places.
b. When the company sells 20,000 units, what is the total indirect selling expense that cannot be readily traced to individual
sales representatives?
$
$
0
Show less A
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