Required information [The following information applies to the questions displayed below.] 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 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
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Required information
[The following information applies to the questions displayed below.]
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
$ 5.00
$ 3.50
$ 2.50
$ 1.00
$ 0.50
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
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?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
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? (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?
Show less A
2a. Direct materials per unit
2a. Direct labor per unit
2a. Variable manufacturing overhead per unit
2a. Fixed manufacturing overhead per unit
2a. Total manufacturing cost per unit
$
0.00
2a. Number of units produced and sold
2a. Total direct costs
$
2b. Total indirect costs
< Required 1
Required 3 >
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] 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 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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? (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? Show less A 2a. Direct materials per unit 2a. Direct labor per unit 2a. Variable manufacturing overhead per unit 2a. Fixed manufacturing overhead per unit 2a. Total manufacturing cost per unit $ 0.00 2a. Number of units produced and sold 2a. Total direct costs $ 2b. Total indirect costs < Required 1 Required 3 >
Required information
[The following information applies to the questions displayed below.]
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
$ 5.00
$ 3.50
$ 2.50
$ 1.00
$ 0.50
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
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?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 20,000 units? (Round per unit values to 2 decimal places.)
b. What is the total indirect manufacturing cost incurred to make 20,000 units? (Round per unit values to 2 decimal places.)
1a. Direct materials per unit
1a. Direct labor per unit
1a. Direct manufacturing cost per unit
1a. Number of units produced and sold
1a. Total direct manufacturing cost
1b. Variable manufacturing overhead per unit
1b. Fixed manufacturing overhead per unit
1b. Indirect manufacturing cost per unit
1b. Number of units produced and sold
1b. Total indirect manufacturing cost
< Required 1
Required 2 >
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] 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 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 20,000 units? (Round per unit values to 2 decimal places.) b. What is the total indirect manufacturing cost incurred to make 20,000 units? (Round per unit values to 2 decimal places.) 1a. Direct materials per unit 1a. Direct labor per unit 1a. Direct manufacturing cost per unit 1a. Number of units produced and sold 1a. Total direct manufacturing cost 1b. Variable manufacturing overhead per unit 1b. Fixed manufacturing overhead per unit 1b. Indirect manufacturing cost per unit 1b. Number of units produced and sold 1b. Total indirect manufacturing cost < Required 1 Required 2 >
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