Cost Classifications $($Static$)$

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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:

$$Average Cost per UnitDirect materials$ $7\mathrm{.}00$Direct labor$ $4\mathrm{.}00$Variable manufacturing overhead$ $1\mathrm{.}50$Fixed manufacturing overhead$ $5\mathrm{.}00$Fixed selling expense$ $3\mathrm{.}50$Fixed administrative expense$ $2\mathrm{.}50$Sales commissions$ $1\mathrm{.}00$Variable administrative expense$ $0\mathrm{.}50$

Exercise $1-8($Static$)$ Product Costs and Period Costs; Variable and Fixed Costs $[$LO$1-3,$ LO$1-4]$

$3.$ Assume the cost object is the company$$s various sales representatives. Furthermore, assume that the company spent $$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 that can be readily traced 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?