When the company sells 20,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 4CMA: Morrisons Plastics Division, a profit center, sells its products to external customers as well as to...
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When the company sells 20,000 units, what is the total indirect selling expense that cannot be readily
traced to individual sales representatives?
Transcribed Image Text:When the company sells 20,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
Required information
[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
$ 5.00
$ 3.50
$ 2.50
$ 1.00
$ 0.50
Transcribed Image Text:Required information [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 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50
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