A company provided the following information on the average cost per unit:

Direct materials	$30.00
Direct labour	$20.00
Variable manufacturing overhead	$5.00
Fixed manufacturing costs	$8.00
fixed selling expenses	$6.00
Fixed administrative expenses	$7.00
Sales commissions	$4.00
Variable administrative expenses	$3.00

Total fixed selling expenses are allocated as follows:

$125,000 in promotions and the rest in sales salaries

If the company uses sales representatives as a cost object and sells 50,000 units, calculate direct selling expenses are and indirect selling expenses.

Answer rating: 100% (QA)

To calculate the direct selling expenses and indirect selling expenses we need to break down the fix... View the full answer