ZuoTi.Pro
Question
How do you calculate 2b and 3b?
Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Pixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Cost per Unit 7.40 4.40 $ 1.90 $5.40 3.90 2.90 1.40 0.90 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 15,500 units? b. What is the total indirect manufacturing cost incurred to make 15,500 units? 2. Assume the cost object is the Manufacturing Department and that its totaf output is 15,500 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 $44,950 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the companys sales representatives compensation. a. When the company sells 15,500 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 15,500 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

It is assumed that the maximum production capacity would be 15,500 Units.1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 15.500 units? Direct materials per unit $7.40 4.40 irect labor per unit irect manufacturing cost per unit (a) umber of units sold (b) $11.80 15,500 $182,900 Total direct manufacturing cost (a) X (b b. What is the total indirect manufacturing cost incurred to make 15,500 units? $1.90 5,40 ariable manufacturing overhead per unit ixed manufacturing overhead per unit ndirect manufacturing cost per unit (a Number of units sold (b Total indirect manufacturing cost (a) * (b) $7.30 15,500 $113,150 Note: It is assumed that the average fixed manufacturing overhead cost per unit of S5.40 is valid for only one level of activity 15,500 units produced 2. Assume the cost object is the Manufacturing Department and that its total output is 15,500 units. How much total manufacturing cost is directly traceable to the Manufacturing Department? irect materials per unit a. $7.40 440 1.90 5.40 Direct labor per unit ariable manufacturing overhead per unit ixed manufacturing overhead per unit Total manufacturing cost per unit (a) $19.10 15,500 $296,050 umber of units sold (b Total direct costs (a) x (b) b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? None of the manufacturing costs should be treated as indirect costs when the cost object is the Manufacturing Department. Created by Universal Document Converter3. Assume the cost object is the companys various sales representatives. Furthermore, assume that the company spent S44,450 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the companys sales representatives compensation a. When the company sells 15,500 units, what is the total direct selling expense that can be readily traced to individual sales representatives? The first step in calculating the total direct selling expense is to determine the fixed portion of the sales represcntatives compensation as follows: Fixed selling expense per unit (a) Number of units sold (b) Total fixed selling expense (a) x (b) $3,90 15,500 $60,450 otal fixed selling expense (a) Advertising expenditures (b) Total fixed portion of the sales representatives compensation (a)- (b) $60,450 S44,950 S15500 The second step is to calculate the total direct selling expense that is traceable to individual sales representatives as follows ales commissions per unit (a) $1.40 15,500 umber of units sold (b Total sales commission (a) x $21,700 ixed portion of sales representatives compensation 15,500 S37.200 Total direct selling expense b. When the company sells 15,500 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? The total indirect selling expense that cannot be traced to individual sales representatives is $44,950. The advertising expenditures cannot be traced to specific sales representatives Administrative expenses could be direct or indirect depending on the cost object. For example, the chief financial officers salary would be an indirect cost if the cost object is units of production; however, his salary would be a direct cost if the cost object is the Finance Department that he oversees Created by Universal Document Converter

0 0
Add a comment
Know the answer?
Add Answer to:
How do you calculate 2b and 3b? Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Average Cost per Unit Direct materials $ 9.00 Direct labor $ 6.00 Variable manufacturing overhead $...

    Average Cost per Unit Direct materials $ 9.00 Direct labor $ 6.00 Variable manufacturing overhead $ 3.50 Fixed manufacturing overhead $ 7.00 Fixed selling expense $ 5.50 Fixed administrative expense $ 4.50 Sales commissions $ 3.00 Variable administrative expense $ 2.50 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 32,500 units? b. What is the total indirect manufacturing cost incurred to make 32,500 units? 2. Assume the...

  • Check my work 2 Kubin Company's relevant range of production is 13,000 to 18,000 units. When...

    Check my work 2 Kubin Company's relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 units, its average costs per unit are as follows: Average Cost per Unit 7.40 s4.40 $ 1.90 s 5.40 3.90 $ 2.90 s 1.40 S 0.90 points Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Pixed seliing expense rixed administrative expense Sales commissions Variable administrative expense eBook References 1. Assume the cost object is units of p...

  • How do I find: Total indirect costs? Fixed portion of sales representatives compensation? Total indirect selling...

    How do I find: Total indirect costs? Fixed portion of sales representatives compensation? Total indirect selling expense? Thank you Kubin Company's relevant range of production is 13.000 to 18.000 units. When It produces and sells 15,500 units, ts average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Pixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit s7.40 s 4.40 s 1.90 $ 5.40 3.90 2.90 s...

  • Exercise 1-7 Direct and Indirect Costs (LO1-1) Kubin Company's relevant range of production is 13,000 to...

    Exercise 1-7 Direct and Indirect Costs (LO1-1) Kubin Company's relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 units, its average costs per unit are as follows: points eBook 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 $ 7.40 $ 4.40 $ 1.90 $ 5.40 $ 3.90 $ 2.90 $ 1.40 $ 0.90 Print References Required: 1....

  • ssignment Saved Help Save & Ext Check Kubin Company's relevant range of production is 13,000 to...

    ssignment Saved Help Save & Ext Check Kubin Company's relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 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 s 7.40 $ 4.40 $1.90 $ 5.40 3.90 S 2.90 $ 1.40 $ 0.90 Required: 1. Assume the cost object is units...

  • Kubin Company's relevant range of production is 13,000 to 18,000 units. When it produces and sells...

    Kubin Company's relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 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 $ 7.40 $ 4.40 $ 1.90 $ 5.40 $ 3.90 $ 2.90 $ 1.40 $ 0.90 Required: 1. Assume the cost object is units of production: a. What is...

  • Direct and Indirect Costs

    ubin 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$7.00Direct labor$4.00Variable manufacturing overhead$1.50Fixed manufacturing overhead$5.00Fixed selling expense$3.50Fixed administrative expense$2.50Sales commissions$1.00Variable administrative expense$0.50 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...

  • how to solve 3b？ Kubin Company's relevant range of production is 18,000 to 22,000 units. When...

    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:...

  • Kubin Company's relevant range of production is 13,000 to 18,000 units. When it produces and sells...

    Kubin Company's relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 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 Cost per Unit $7.40 $ 4.40 $ 1.90 $ 5.40 $3.90 s 2.90 $ 1.40 $ 0.90 Required: 1. Assume the cost object is units of production: a. What is the total direct...

  • Kubin Company's relevant range of production is 13,000 to 18,000 units. When it produces and sells...

    Kubin Company's relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 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 Cost per Unit $7.40 $ 4.40 $ 1.90 $ 5.40 $3.90 s 2.90 $ 1.40 $ 0.90 Required: 1. Assume the cost object is units of production: a. What is the total direct...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT