ACC 252 Chapter Notes - Chapter 1: Direct Labor Cost, Solder, Cost Driver

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tealreindeer986

3 Dec 2014

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Refers to any materials that are used in the final product and the finished product of one company can become the raw materials of another company. Raw materials may include both direct and indirect materials. Are those materials that become an integral part of the finished product and whose costs can be conveniently traced to the finished product. Materials such as solder and glue are indirect materials and are included as part of manufacturing overhead. Consists of labors costs that can be easily traced to individual units of product. Direct labor is sometimes called touch labor because direct labor workers typically touch the product while it is being made. Labors costs that cannot be physically traced to particular products or that can be traced only at great cost and inconvenience. The third element of manufacturing cost, includes all manufacturing costs except direct materials and direct labor.

Related Questions

Kubin Companyâs relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	8.10
Direct labor	$	5.10
Variable manufacturing overhead	$	2.60
Fixed manufacturing overhead	$	6.10
Fixed selling expense	$	4.60
Fixed administrative expense	$	3.60
Sales commissions	$	2.10
Variable administrative expense	$	1.60

2. Assume the cost object is the Manufacturing Department and that its total output is 23,000 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?


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

beigemallard451

Kubin Companyâs 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:

2. Assume the cost object is the Manufacturing Department and that its total output is 29,250 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?

2. Assume the cost object is the Manufacturing Department and that its total output is 29,250 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


2a.	Direct materials per unit	$8.50
	Direct labor per unit	5.50
	Variable manufacturing overhead per unit	3.00
	Fixed manufacturing overhead per unit	6.50
	Total manufacturing cost per unit	$23.50
	Number of units sold	29,250
	Total direct costs	$687,375

2b.	Total indirect costs

3. Assume the cost object is the companyâs various sales representatives. Furthermore, assume that the company spent $117,000 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 representativesâ compensation.

a. When the company sells 29,250 units, what is the total direct selling expense that can be readily traced to individual sales representatives?

b. When the company sells 29,250 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

a. When the company sells 29,250 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 29,250 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

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3a.	Sales commissions per unit
	Number of units sold
	Total sales commission
	Fixed portion of sales representativesâ compensation
	Total direct selling expense

3b.	The total indirect selling expense

harlequinsardine998

Kubin Companyâs relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 units, its average costs per unit are as follows:

Average Cost per Unit

Variable manufacturing overhead

2.60

Fixed manufacturing overhead

6.10

Fixed selling expense

4.60

Fixed administrative expense

3.60

Sales commissions

2.10

Variable administrative expense

1.60

3. Assume the cost object is the companyâs various sales representatives. Furthermore, assume that the company spent $82,800 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 representativesâ compensation.

a. When the company sells 23,000 units, what is the total direct selling expense that can be readily traced to individual sales representatives?

b. When the company sells 23,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?


3a.	Sales commissions per unit
	Number of units sold
	Total sales commission	$0
	Fixed portion of sales representativesâ compensation
	Total direct selling expense	$0

3b.	The total indirect selling expense

erindeer655

ACC 252 Chapter Notes - Chapter 1: Direct Labor Cost, Solder, Cost Driver

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