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6 October, 19:57

Kubin Company's relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 4.20 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 5.20 Fixed selling expense $ 3.70 Fixed administrative expense $ 2.70 Sales commissions $ 1.20 Variable administrative expense $ 0.70 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 12,500 units? b. What is the total indirect ma

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  1. 6 October, 21:28
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    a. $142,500

    b. $86,250

    Explanation:

    a. The computation of the total direct manufacturing cost is shown below:

    = (Direct material per unit + direct labor per unit) * number of units manufactured

    = ($7.20 + $4.20) * 12,500 units

    = $142,500

    b. The computation of the total indirect manufacturing cost is shown below:

    = (Variable manufacturing overhead per unit + Fixed manufacturing overhead per unit) * number of units manufactured

    = ($1.70 + $5.20) * 12,500 units

    = $86,250
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Home » Business » Kubin Company's relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 4.
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