Mathematics, 23.11.2019 18:31 tinklover1413
kubin company’s relevant range of production is 22,000 to 27,000 units. when it produces and sells 24,500 units, its average costs per unit are as follow
averege cost per unit
direct materials $ 8.20
direct labor $ 5.20
variable manufacturing overhead $ 2.70 fixed manufacturing overhead $ 6.20 fixed selling expense $ 4.70
fixed administrative expense $ 3.70
sales commissions $ 2.20
variable administrative expense $ 1.70
1. assume the cost object is units of production:
a. what is the total direct manufacturing cost incurred to make 24,500 units? b. what is the total indirect manufacturing cost incurred to make 24,500 units?
2. assume the cost object is the manufacturing department and that its total output is 24,500 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 company’s various sales representatives. furthermore, assume that the company spent $90,650 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 24,500 units, what is the total direct selling expense that can be readily
traced to individua l sales representatives?
b. when the company sells 24,500 units, what is the total indirect selling expense that cannot be readily traced to individua l sales representatives?
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kubin company’s relevant range of production is 22,000 to 27,000 units. when it produces and sells 2...
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