[The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 23,000 to 27,500 units. When it produces and sells 25,250 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 Required: 1. Assume the cost object is units of production: Average Cost per Unit $ 8.30 $ 5.30 $ 2.80 a. What is the total direct manufacturing cost incurred to make 25,250 units? b. What is the total indirect manufacturing cost incurred to make 25,250 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 25,250 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 $95,950 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 25,250 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 25,250 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? Required 1 Required 2 Required 3 $ 6.30 $ 4.80 $ 3.80 $ 2.30 $ 1.80 Complete this question by entering your answers in the tabs below. 3a. Sales commissions per unit 3a. Number of units sold 3a. Total sales commission 3a. Fixed portion of sales representatives' compensation 3a. Total direct selling expense 3b. The total indirect selling expense 3. Assume the cost object is the company's various sales representatives. Furthermore, assume that the company spent $95,950 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 25,250 units, what is the total direct selling expense that can be readily traced to individual sales representatives? (Round per unit value to 2 decimal places.). b. When the company sells 25,250 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? $ $ 0 0 Show less A

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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[The following information applies to the questions displayed below.]
Kubin Company's relevant range of production is 23,000 to 27,500 units. When it produces and sells 25,250 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
$ 8.30
$ 5.30
Required:
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 25,250 units?
b. What is the total indirect manufacturing cost incurred to make 25,250 units?
2. Assume the cost object is the Manufacturing Department and that its total output is 25,250 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 $95,950 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 25,250 units, what is the total direct selling expense that can be readily traced to individual sales
representatives?
b. When the company sells 25,250 units, what is the total indirect selling expense that cannot be readily traced to individual sales
representatives?
Required 1 Required 2 Required 3
$ 2.80
$ 6.30
$4.80
$ 3.80
$ 2.30
$ 1.80
Complete this question by entering your answers in the tabs below.
3a. Sales commissions per unit
3a. Number of units sold
3a. Total sales commission
3a. Fixed portion of sales representatives' compensation
3a. Total direct selling expense
3b. The total indirect selling expense
3. Assume the cost object is the company's various sales representatives. Furthermore, assume that the company spent
$95,950 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 25,250 units, what is the total direct selling expense that can be readily traced to individual sales
representatives? (Round per unit value to 2 decimal places.)
b. When the company sells 25,250 units, what is the total indirect selling expense that cannot be readily traced to individual
sales representatives?
$
$
0
0
Show less A
Transcribed Image Text:[The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 23,000 to 27,500 units. When it produces and sells 25,250 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 $ 8.30 $ 5.30 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 25,250 units? b. What is the total indirect manufacturing cost incurred to make 25,250 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 25,250 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 $95,950 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 25,250 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 25,250 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? Required 1 Required 2 Required 3 $ 2.80 $ 6.30 $4.80 $ 3.80 $ 2.30 $ 1.80 Complete this question by entering your answers in the tabs below. 3a. Sales commissions per unit 3a. Number of units sold 3a. Total sales commission 3a. Fixed portion of sales representatives' compensation 3a. Total direct selling expense 3b. The total indirect selling expense 3. Assume the cost object is the company's various sales representatives. Furthermore, assume that the company spent $95,950 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 25,250 units, what is the total direct selling expense that can be readily traced to individual sales representatives? (Round per unit value to 2 decimal places.) b. When the company sells 25,250 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? $ $ 0 0 Show less A
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