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
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?
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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 |
Required:
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 23,000 units?
b. What is the total indirect manufacturing cost incurred to make 23,000 units?
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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 | |||||||||||||||||||||||||||
| 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?
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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:
| Amount 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 |
Required:
1. If 21,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 25,000 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 21,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 25,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 21,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 25,000 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 21,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 25,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
(Round per unit values to 2 decimal places.)
