Question

Kubin Company's relevant range of production is 27,000 to 29.000 units. When it produces and sells 28,000 units, its average costs per unit are as follows: points Average Cost per Unit $ 8.70 $ 5.70 $ 3.20 $6.70 $ 5.20 $ 4.20 $2.70 $ 2.20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense eBook Print References Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 28,000 units? b. What is the total indirect manufacturing cost incurred to make 28.000 units 2. Assume the cost object is the Manufacturing Department and that its total output is 28,000 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? 3. Assume the cost object is the company s various sales representatives. Furthermore, assume that the company spent $117600 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 28,000 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 28.000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3

question 2 and 3

Answer 1

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	Kubin Company's relevant range production =27000 Unit - 29000 unit
	Produced and Sells -Unit		28,000
		Average cost per unit-$/Unit
	Direct material	8.70
	Direct Labour	5.70
	Operating cost(a)-DM+DL	14.40
	Number of Unit (b)	28,000
1 -a)	Total direct Manufacturing cost(a*b)$	4,03,200	(28000*$14.4)
	Variable manufactirng cost	3.20
	Fixed manufacturing overhead	6.70
	Indirect cost $/ unit (c)-VM+FM	9.90
1 -b)	Total direct Manufacturing cost(b*c)$	2,77,200	(28000*$9.9)
	Manufacturing cost
	Direct material	8.70
	Direct Labour	5.70
	Variable manufactirng cost	3.20
	Fixed manufacturing overhead	6.70
	Manufacturing cost $/ Unit- e(DM+DL+VM+FM)	24.30
2-a)	Total Manufacturing cost(b*e)$	6,80,400	(28000*$24.3)
2- b)	No indirect cost - all cost already identified
3)	Fixed selling expeses $/ Unit F	5.20
a)	Number of Unit (b)	28,000
	Selling Fixed cost F*b) $	1,45,600	(28000*$5.2)
	Less-
	Advertisement cost $	1,17,600
	Fixed part of rest amount $	28,000
	Total direct Selling Price
	Sales Commission $/ unit (g)	2.70
	Number of Unit (b)	28,000
	Total Selling commission(g*b) $	75,600	(28000*$2.7)
	Add- Fixed part of above amount $	28,000
3- a)	Total direct Selling Price$	1,03,600
b)	the total Indirect selling expenses that cannot
	be readily traced amoun to $	1,17,600