What is the total direct manufacturing cost incurred

Assignment Help Accounting Basics
Reference no: EM131809751

Question - Kubin Company's relevant range of production is 23,000 to 27,500 units. When it produces and sells 25,250 units, its average costs per unit are as follows:

 

Average Cost per Unit

Direct materials

$ 8.30

Direct labor

$ 5.30

Variable manufacturing overhead

$ 2.80

Fixed manufacturing overhead

$ 6.30

Fixed selling expense

$ 4.80

Fixed administrative expense

$ 3.80

Sales commissions

$ 2.30

Variable administrative expense

$ 1.80

Required: 1. Assume the cost object is units of production:

a. What is the total direct manufacturing cost incurred to make 25,250 units?

b. What is the total indirect manufacturing cost incurred to make 25,250 units?

2. Assume the cost object is the Manufacturing Department and that its total output is 25,250 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 traced to the Manufacturing Department?

Reference no: EM131809751

Questions Cloud

Discuss what bid price should you submit on the contract : If your tax rate is 30 percent and your required return on this project is 10 percent, what bid price should you submit on the contract
Determine the best depreciation method : The company treasurer must determine the best depreciation method for office furniture that costs $50,000 and has a zero salvage value at the end of a 10-year
Compute the depreciation schedule : The plant engineer estimates the machine has a useful life of 5 years and no salvage value. Compute the depreciation schedule using:
We are nearly caught up on our overdue payable balances : we have found some excellent merchandise opportunities. Some of our suppliers have made some of their apparel merchandise available at a deep discount
What is the total direct manufacturing cost incurred : Assume the cost object is units of production: What is the total direct manufacturing cost incurred to make 25,250 units
Compute the depreciation schedule using : The projected utilization of the machinery when it was purchased, and its actual production to date, are as follows:
What is the chance that second item in the box is defective : Suppose that the birthday of each of three people is equally likely to be any one of the 365 days of the year, independently of others.
Compute the macrs depreciation schedule : The plane cost $1.5 million and, for depreciation purposes, is assumed to have a zero salvage value at the end of 5 years.
Discuss what is the minimum price stacy should accept : Dick Button has offered to buy Stacy's vineyard business by assuming the 40-year lease. On the basis of the current value of the business

Reviews

Write a Review

Accounting Basics Questions & Answers

  Assuming the market interest rate on the issue date

White Water issues $500,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.

  Prepare the flexible budget for patient-visits per month

Bracamonte Hospital bases its budgets on patient-visits. Required: Prepare the flexible budget for 9,300 patient-visits per month

  During 2013 carolina company stock was sold for 12000 the

on december 21 2012 zurich company provided you with the following information regarding its trading

  Find the net advantage of replacing the old machine

If the old machine is replaced, it can be sold for $24,000. The net advantage (disadvantage) of replacing the old machine is

  The josetti partnership has total partners equity of 558000

the josetti partnership has total partners equity of 558000 which is made up of dopke capital 392000 and hughes capital

  Wich initiative should ofs undertake 3 should ofs use the

has anyone done these questions guideline questions 1.review the 11 strategic initiatives described in exhibit 8 and

  Journalize the given transactions

Requisitioned materials for cutting $20,000 and assembly $8,000, Required - Journalize the above transactions

  How could you use a community of practice

How could you use a community of practice at a college or university?

  Establishment of 1231 assets

Why did Congress establish favorable treatment for 1231 assets?

  Prepare entries to record flow of costs into department one

Prepare entries to record the flow of costs into Department 1 for direct materials, direct labor and overhead.

  Calculate cash flows out of eden inc is planning to invest

calculate cash flows out of eden inc. is planning to invest in new manufacturing equipment to make a new garden tool.

  Accountancy is an information system

Accountancy is an Information System. Do you agree? Substantiate your answer with reasons. How does an Accountant help in planning and controlling a large commercial organization? Explain.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd