[SOLVED] Question & Answer: 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:…..

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:

Tag: kubin company’s relevant range of production is

Struggling to find relevant content? Order a custom essay on
[SOLVED] Question & Answer: 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:…..
Let our experts save you the hassle
Order Now

 

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 is the total direct manufacturing cost incurred to make 20,000 units?

b. What is the total indirect manufacturing cost incurred to make 20,000 units?

2. Assume the cost object is the Manufacturing Department and that its total output is 20,000 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 $50,000 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 representatives’ compensation.

a. When the company sells 20,000 units, what is the total direct selling expense that can be readily traced to individual sales representatives?

b. When the company sells 20,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

Tag: kubin company’s relevant range of production is

Expert Answer

 

Average Cost per Unit
Direct materials 7
Direct labor 4
Variable manufacturing overhead 1.5
Fixed manufacturing overhead 5
Fixed selling expense 3.5
Fixed administrative expense 2.5
Sales commissions 1
Variable administrative expense 0.5
ans 1
Total direct manufacturing cost
No. of units Total
Direct materials 20000 7 140000
Direct labor 20000 4 80000
Total direct manufacturing cost 220000
1b
Total Indirect manufacturing cost No. of units Total
Variable manufacturing overhead 20000 1.5 30000
Fixed manufacturing overhead 20000 5 100000
Total Indirect manufacturing cost 130000
ans 2
No. of units Total
Direct materials 20000 7 140000
Direct labor 20000 4 80000
Variable manufacturing overhead 20000 1.5 30000
total manufacturing cost is directly traceable to the Manufacturing Department 250000
ans 2b
total manufacturing cost is indirectly to the cannot be easily traceable manufacturing Department
Fixed manufacturing overhead 100000
ans 3
Fixed selling expense (20000*3.5)-50000 20000
Sales commissions (1*20000) 20000
Total direct selling expenses
3b) Indirect selling expensess $50,000

Tag: kubin company’s relevant range of production is

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
Sign up, place your order, and leave the rest to our professional paper writers in less than 2 minutes.
step 1
Upload assignment instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
s
Get personalized services with GPA Fix
One writer for all your papers
You can select one writer for all your papers. This option enhances the consistency in the quality of your assignments. Select your preferred writer from the list of writers who have handledf your previous assignments
Same paper from different writers
Are you ordering the same assignment for a friend? You can get the same paper from different writers. The goal is to produce 100% unique and original papers
Copy of sources used
Our homework writers will provide you with copies of sources used on your request. Just add the option when plaing your order
What our partners say about us
We appreciate every review and are always looking for ways to grow. See what other students think about our do my paper service.
Business and administrative studies
Thank you very much for your help.
Customer 452861, September 16th, 2022
Literature
Excellent
Customer 452813, July 5th, 2023
Social Work and Human Services
Good Work!
Customer 452587, September 2nd, 2021
Education
Thank you so much!
Customer 452675, March 17th, 2023
Nursing
Thank you for the great job and timely delivery.
Customer 452457, December 18th, 2020
Psychology
Thanks so very much. The paper is well-researched and adequately referenced. You have been of great help during the pandemic!
Customer 452467, January 31st, 2021
IT, Web
Don did an excellent job!!!
Customer 452885, January 25th, 2023
IT, Web
Did an excellent job with the body of the paper and staying on the topic.
Customer 452885, October 27th, 2022
Human Resources Management (HRM)
Thanks
Customer 452701, August 22nd, 2023
Medicine
This has everything that was in the rubric. Thank you!
Customer 452707, May 29th, 2022
Education
Thank you so much
Customer 452631, October 5th, 2021
Other
AWESOME
Customer 452813, June 19th, 2022
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Good News ! We now help with PROCTORED EXAM. Chat with a support agent for more information