Check my work Kubin Companys relevant range of production is
Check my work Kubin Company\'s relevant range of production is 16,000 to 24,500 units When R produces and sells 20,250 units, its average costs per unit are as follows 7.70 4-70 Direct 1 Varlable manofacturing overhead 5-70 4.20 facturing overhead s 1.70 s 120 Variable ive expense Assume the cost object is units of production a What is the total direct manufacturing cost incurred to make 20.250 unts? b. What is the total indirect manufacturing cost incurred to make 20.250 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 20,250 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 tbraced to the Manufacturing Department? 3. Assume the cost object is the companys various sales representatives Furtheemore, assume that the company spent $64.800 of ts totai fixed selling expense on advertising and the remainder of the total fwed selling expense comprised the fised portion of the company\'s sales representatives compensation 5 BN M
Solution
Answer 1-a. Direct Materials per unit 7.70 Direct Labor per Unit 4.70 Total Direct Manufacturing Costs per Unit 12.40 No. of Units Sold 20,250.00 Total Direct Manufacturing Costs 251,100.00 Answer 1-b. Variable MOH per Unit 2.20 Fixed MOH per Unit 5.70 Total Indirect Manufacturing Costs per Unit 7.90 No. of Units Sold 20,250.00 Total Indirect Manufacturing Costs 159,975.00 Answer 2-a. Manufacturing Costs Directly Traceable to Manufacturing Department Direct Materials per unit 7.70 Direct Labor per Unit 4.70 Variable MOH per Unit 2.20 Fixed MOH per Unit 5.70 Total Manufacturing Cost per Unit 20.30 Number of Units Sold 20,250.00 Total Direct Costs 411,075.00 Answer 2-b. No Manufacturing costs can be treated as indirect costs, when the cost object is Manufacturing Department. Answer 3-a. Sales Commissions per Unit 1.70 Number of Units Sold 20,250.00 Total Sales Commission 34,425.00 Fixed Portion of Sales representatives\' compensation 20,250.00 Total Direct Selling Expenses 54,675.00 Fixed Selling Expenses - $4.20 X 20,250 Units 85,050.00 Less: Advertising Expenses 64,800.00 Fixed Selling Exp. - Sales Representatives 20,250.00 Answer 3-b. Advertising Expenses 64,800.00 Total Indirect Selling Expenses 64,800.00