Question
In: Accounting
Kubin Company’s relevant range of production is 23,000 to 27,500 units. When it produces and sells...
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:
| Average Cost per Unit | ||
| Direct materials | $ | 8.30 |
| Direct labor | $ | 5.30 |
| Variable manufacturing overhead | $ | 2.80 |
| Fixed manufacturing overhead | $ | 6.30 |
| Fixed selling expense | $ | 4.80 |
| Fixed administrative expense | $ | 3.80 |
| Sales commissions | $ | 2.30 |
| Variable administrative expense | $ | 1.80 |
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?
ufacturing cost incurred to make 23,000 units?
|
| 2a. | Direct materials per unit | |
| Direct labor per unit | ||
| Variable manufacturing overhead per unit | ||
| Fixed manufacturing overhead per unit | ||
| Total manufacturing cost per unit | $0.00 | |
| Number of units sold | ||
| Total direct costs | $0 | |
| 2b. | Total indirect
costs |
3a
| sales commissions per unit | ||
| number of units sold | ||
| total sales commission | $0 | |
| Fixed portion of sales representatives' compensation | ||
| total direct selling expense | $0.00 | |
| 3b | Total indirect selling expense | |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Kubin Company’s relevant range of production is 23,000 to 27,500 units. When it produces and sells...
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:
Average Cost per Unit
Direct materials
$
8.30
Direct labor
$
5.30
Variable manufacturing overhead
$
2.80
Fixed manufacturing overhead
$
6.30
Fixed selling expense
$
4.80
Fixed administrative expense
$
3.80
Sales commissions
$
2.30
Variable administrative expense
$
1.80
Required:
1. For financial accounting purposes, what is the total amount
of...
Kubin Company’s relevant range of production is 23,000 to 27,500 units. When it produces and sells...
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:
Average Cost per Unit
Direct materials
$
8.30
Direct labor
$
5.30
Variable manufacturing overhead
$
2.80
Fixed manufacturing overhead
$
6.30
Fixed selling expense
$
4.80
Fixed administrative expense
$
3.80
Sales commissions
$
2.30
Variable administrative expense
$
1.80
Required:
1. If 23,000 units are produced and sold, what is the...
Kubin Company’s relevant range of production is 23,000 to 27,500 units. When it produces and sells...
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:
Average Cost per Unit
Direct materials
$
8.30
Direct labor
$
5.30
Variable manufacturing overhead
$
2.80
Fixed manufacturing overhead
$
6.30
Fixed selling expense
$
4.80
Fixed administrative expense
$
3.80
Sales commissions
$
2.30
Variable administrative expense
$
1.80
Required:
1. For financial accounting purposes, what is the total amount
of...
Kubin Company's relevant range of production is 23,000 to 27,500 units. When it produces and sells...
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
$8.30
Direct Labor
$5.30
Variable Manufacturing Overhead
$2.80
Fixed Manufacturing Overhead
$6.30
Fixed Selling Expense
$4.80
Fixed Administrative Expense
$3.80
Sales Commissions
$2.30
Variable Administrative Expense
$1.80
Required
1. If 23,000 units are produced and sold, what is the variable
cost per unit produced and sold?
2. If 27,500 units are produced...
Kubin Company’s relevant range of production is 20,000 to 23,000 units. When it produces and sells...
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:
Amount per Unit Direct materials $ 8.00 Direct labor $ 5.00
Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead
$ 4.00 Fixed selling expense $ 4.50 Fixed administrative expense $
3.50 Sales commissions $ 2.00 Variable administrative expense $
1.50 Required:
1. If 20,000 units are produced and sold, what is the variable
cost...
Kubin Company’s relevant range of production is 20,000 to 23,000 units. When it produces and sells...
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:
Average Cost per Unit
Direct materials
$
8.00
Direct labor
$
5.00
Variable manufacturing overhead
$
2.50
Fixed manufacturing overhead
$
6.00
Fixed selling expense
$
4.50
Fixed administrative expense
$
3.50
Sales commissions
$
2.00
Variable administrative expense
$
1.50
Required:
1. Assume the cost object is units of production:
a. What...
Kubin Company’s relevant range of production is 26,000 to 35,500 units. When it produces and sells...
Kubin Company’s relevant range of production is 26,000 to 35,500
units. When it produces and sells 30,750 units, its average costs
per unit are as follows:
Average Cost per Unit
Direct materials
$
8.60
Direct labor
$
5.60
Variable manufacturing overhead
$
3.10
Fixed manufacturing overhead
$
6.60
Fixed selling expense
$
5.10
Fixed administrative expense
$
4.10
Sales commissions
$
2.60
Variable administrative expense
$
2.10
Required:
1. Assume the cost object is units of production:
a. What...
Kubin Company’s relevant range of production is 25,000 to 33,500 units. When it produces and sells...
Kubin Company’s relevant range of production is 25,000 to 33,500
units. When it produces and sells 29,250 units, its average costs
per unit are as follows:
Average Cost per Unit
Direct materials
$
8.50
Direct labor
$
5.50
Variable manufacturing overhead
$
3.00
Fixed manufacturing overhead
$
6.50
Fixed selling expense
$
5.00
Fixed administrative expense
$
4.00
Sales commissions
$
2.50
Variable administrative expense
$
2.00
Required:
1. Assume the cost object is units of production:
a. What...
Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells...
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
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...
Kubin Company’s relevant range of production is 28,000 to 31,500 units. When it produces and sells...
Kubin Company’s relevant range of production is 28,000 to 31,500
units. When it produces and sells 29,750 units, its average costs
per unit are as follows:
Amount per Unit
Direct materials
$
8.80
Direct labor
$
5.80
Variable manufacturing overhead
$
3.30
Fixed manufacturing overhead
$
6.80
Fixed selling expense
$
5.30
Fixed administrative expense
$
4.30
Sales commissions
$
2.80
Variable administrative expense
$
2.30
Required:
1. If 28,000 units are produced and sold, what is the variable...
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