Kubin Company's relevant range of production is 10,000 to 12,000 units. When it produces and sells...
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Kubin Company's relevant range of production is 10,000 to 12,000 units. When it produces and sells 11,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense $ 7.10 $ 4.10 $ 1.60 $ 5.10 $ 3.60 Fixed administrative expense $ 2.60 Sales commissions $ 1.10 Variable administrative expense $ 0.60 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 11,000 units? b. What is the total indirect manufacturing cost incurred to make 11,000 units? 2. Assume the cost object is the Manufacturing Department and its total output is 11,000 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? 3. Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $28,600 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 11,000 units, what is the total direct selling expense readily traceable to individual sales representatives? b. When the company sells 11,000 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. Required 1 Requirea I Required 2 Required 3 2. Assume the cost object is the Manufacturing Department and its total output is 11,000 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? Note: Round per unit values to 2 decimal places. b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? 2a. Direct material cost per unit 2a. Direct labor cost per unit 2a. Variable manufacturing overhead per unit 2a. Fixed manufacturing overhead per unit 2a. Total manufacturing cost per unit 2a. Number of units produced and sold 2a. Total direct costs 2b. Total indirect costs 0.00 $ 0 Show les Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 3. Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $28,600 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 11,000 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 11,000 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 0 3a. Fixed portion of sales representatives' compensation 0 3a. Total direct selling expense 3b. The total indirect selling expense Show less Kubin Company's relevant range of production is 10,000 to 12,000 units. When it produces and sells 11,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense $ 7.10 $ 4.10 $ 1.60 $ 5.10 $ 3.60 Fixed administrative expense $ 2.60 Sales commissions $ 1.10 Variable administrative expense $ 0.60 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 11,000 units? b. What is the total indirect manufacturing cost incurred to make 11,000 units? 2. Assume the cost object is the Manufacturing Department and its total output is 11,000 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? 3. Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $28,600 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 11,000 units, what is the total direct selling expense readily traceable to individual sales representatives? b. When the company sells 11,000 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. Required 1 Requirea I Required 2 Required 3 2. Assume the cost object is the Manufacturing Department and its total output is 11,000 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? Note: Round per unit values to 2 decimal places. b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? 2a. Direct material cost per unit 2a. Direct labor cost per unit 2a. Variable manufacturing overhead per unit 2a. Fixed manufacturing overhead per unit 2a. Total manufacturing cost per unit 2a. Number of units produced and sold 2a. Total direct costs 2b. Total indirect costs 0.00 $ 0 Show les Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 3. Assume the cost object is the company's various sales representatives. Furthermore, assume the company spent $28,600 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 11,000 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 11,000 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 0 3a. Fixed portion of sales representatives' compensation 0 3a. Total direct selling expense 3b. The total indirect selling expense Show less
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Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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