Kubin Companys relevant range of production is $17,000$ to $26,500$ units. When it produces and sells $21,750$ units, its average costs per unit are as follows:

Average Cost per Unit

Direct materials $ $7\mathrm{.}80$

Direct labor $ $4\mathrm{.}80$

Variable manufacturing overhead $ $2\mathrm{.}30$

Fixed manufacturing overhead $ $5\mathrm{.}80$

Fixed selling expense $ $4\mathrm{.}30$

Fixed administrative expense $ $3\mathrm{.}30$

Sales commissions $ $1\mathrm{.}80$

Variable administrative expense $ $1\mathrm{.}30$

Required:

$1.$ Assume the cost object is units of production:

a$.$ What is the total direct manufacturing cost incurred to make $21,750$ units?

b$.$ What is the total indirect manufacturing cost incurred to make $21,750$ units?

$2.$ Assume the cost object is the Manufacturing Department and that its total output is $21,750$ 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?

$3.$ Assume the cost object is the companys various sales representatives. Furthermore, assume that the company spent $$71,775$ 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 $21,750$ units, what is the total direct selling expense that can be readily traced to individual sales representatives?

b$.$ When the company sells $21,750$ units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

Answer rating: 100% (QA)

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