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 Unit | ||
| Direct materials | $ | 7.00 |
| Direct labor | $ | 4.00 |
| Variable manufacturing overhead | $ | 1.50 |
| Fixed manufacturing overhead | $ | 5.00 |
| Fixed selling expense | $ | 3.50 |
| Fixed administrative expense | $ | 2.50 |
| Sales commissions | $ | 1.00 |
| Variable 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 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
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
plzzz help now Exercise 1-7 Direct and Indirect Costs [LO1-1] Kubin Company's relevant range of production...
plzzz help now
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: Average Cost per Unit $7.00 $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 $5.00 $3.50 $2.50 $1.00 $0.50 Required: 1. Assume the cost object is units of production: a....
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...
plzzz help now Exercise 1-7 Direct and Indirect Costs [LO1-1) Kubin Company's relevant range of production...
plzzz help now
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: Average Cost per Unit $7.00 $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 $5.00 $3.50 $2.50 $1.00 $0.50 Required: 1. Assume the cost object is units of production: a....
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....
Exercise 1-7 Direct and Indirect Costs (L01-1) Kubin Company's relevant range of production is 20,000 to...
Exercise 1-7 Direct and Indirect Costs (L01-1) Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 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 $ 8.00 $ 5.00 $ 2.50 $6.00 $ 4.50 $ 3.50 $ 2.00 $ 1.50 Required: 1. Assume the cost object is...
How do you calculate 2b and 3b? Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing...
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...
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...
Exercise 1-7 Direct and Indirect Costs [LO1-1] Kubin Company's relevant range of production is 20,000 to...
Exercise 1-7 Direct and Indirect Costs [LO1-1] Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed achinistrative expense Sales connessions Variable administrative expense Average Cost per | hot $ 8.00 $ 5.00 $ 2.50 $ 6.00 $ 4.50 $ 3.50 $ 2.00 $ 1.50 Required: 1. Assume the cost...
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....
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...
plzzz help now
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: Average Cost per Unit $7.00 $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 $5.00 $3.50 $2.50 $1.00 $0.50 Required: 1. Assume the cost object is units of production: a....
plzzz help now
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: Average Cost per Unit $7.00 $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 $5.00 $3.50 $2.50 $1.00 $0.50 Required: 1. Assume the cost object is units of production: a....
Exercise 1-7 Direct and Indirect Costs (L01-1) Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 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 $ 8.00 $ 5.00 $ 2.50 $6.00 $ 4.50 $ 3.50 $ 2.00 $ 1.50 Required: 1. Assume the cost object is...
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...
Exercise 1-7 Direct and Indirect Costs [LO1-1] Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed achinistrative expense Sales connessions Variable administrative expense Average Cost per | hot $ 8.00 $ 5.00 $ 2.50 $ 6.00 $ 4.50 $ 3.50 $ 2.00 $ 1.50 Required: 1. Assume the cost...
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....
Most questions answered within 3 hours.
-
A χ2-curve, looking at the relationship between age and hours
spent working at an office per...
asked 36 seconds ago -
The pH of a sample of water from a river is 5.0. A
sample of effluent from...
asked 45 minutes ago -
At the beginning of the period, the Fabricating Department
budgeted direct labor of $136,500 and equipment...
asked 1 hour ago -
Please answer all
____ 28. Rent control is usually
justified on the grounds that it protects...
asked 1 hour ago -
PARTS A-D HAVE BEEN ANSWERED. WAS TOLD TO REPOST. ONLY ANSWER
PARTS E and F.
A...
asked 1 hour ago -
2) You are given the task of finding a representation for a
circle in a drawing...
asked 2 hours ago -
STUDY QUESTION: Does use of diet drug fen-phen
(fenfluramine-phentermine) cause valvular heart disease?
HINT: Valvular heart...
asked 2 hours ago -
1. An object weighing 40 N rests on a surface. The coefficient
of friction is 0.35....
asked 3 hours ago -
Investor company owns 35% of investee company voting stock and
accounts for the investment under the...
asked 4 hours ago -
The number of major faults on a randomly chosen 1 km stretch of
highway has a...
asked 5 hours ago -
Consider the competitive environment of Starbuck's, Progressive
Insurance, a manufacturing firm with low turnover, or a...
asked 6 hours ago -
3. Gains from trade
Consider two neighbouring island countries called Euphoria and
Contente. They each have...
asked 7 hours ago