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:
Exercise 1-7 Direct and Indirect Costs [LO1-1]
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:
Required:
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 20,000 units?
b. What is the total indirect manufacturing cost incurred to make 20,000 units?
2. Assume the cost object is the Manufacturing Department and that its total output is 20,000 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 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?
b. When the company sells 20,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
Homework Answers
| Required 1 | Required 2 | ||
| a. $11.0 | b. $6.50 | a. $2,20,000 | b. $1,30,000 |
| 3.a | Sales Commission per Unit | $1 |
| Number of Units Sold | 20,000 Units | |
| Total Sales Commission | $20,000 | |
| Fixed portion of sales representatives compensation | $20,000 | |
| Total direct selling expense | $40,000 | |
| 3 b. | The total indirect selling expense | $50,000 |
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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:
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:
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: Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 20,000 units? b. What is the total indirect manufacturing cost incurred to make 20,000 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 20,000 units. a. How much total manufacturing cost is...
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:
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: Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 20,000 units? b. What is the total indirect manufacturing cost incurred to make 20.000 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 20,000 units. a. How much total manufacturing cost is...
Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells...
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 pen Unit $7.00 $4.e0 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $1.5e $5.0e $3.se $2.50 1.e0 $0.50 Required: 1. Assume the cost object is units of production a What is the total direct manufacturing cost incurred to make...
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Kubin Company's relevant range of production is 19,000 to 20,000 units. When it produces and sells...
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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 pen Unit $7.00 $4.e0 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $1.5e $5.0e $3.se $2.50 1.e0 $0.50 Required: 1. Assume the cost object is units of production a What is the total direct manufacturing cost incurred to make...
Kubin Company's relevant range of production is 19,000 to 20,000 units. When it produces and sells 19.500 units, its average costs per unit are as follows: Average cost per Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $ 7.90 $ 4.90 $ 2.40 $5.99 $ 4.40 5 3.40 $ 1.99 $ 1.40 Required: 1. Assume the cost object is units of production: a. What is the total...
please solve the question
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 Cos per Unit $ 7.80 $ 4.00 $ 1.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense sales commissions Variable administrative expense $ 5.0e $ 3.50 $ 2.50 $ 1.00 $ e.50 Required 1. Assume the cost object is units of...
Kubin Company's relevant range of production is 19,000 to 20,000 units. When it produces and sells 19,500 units, its average costs per unit are as follows: Average Cost per Unit $7.90 $4.90 $2.40 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $5.90 $4.40 $3.40 $1.90 $1.40 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make...
how to solve 3b？
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 Required: 1. Assume the cost object is units of production:...
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Kubin Company’s relevant range of production is 21,000 to 25,000
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make 23,000 units?2. Assume the cost object is the...
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