Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:
Direct materials $ 82,000 Direct labor $ 41,500 Variable manufacturing overhead $ 20,200 Fixed manufacturing overhead 31,900 Total manufacturing overhead $ 52,100 Variable selling expense $ 14,600 Fixed selling expense 23,200 Total selling expense $ 37,800 Variable administrative expense $ 5,300 Fixed administrative expense 27,600 Total administrative expense $ 32,900 3. With respect to cost classifications for manufacturers:
a. What is the total manufacturing cost?
b. What is the total nonmanufacturing cost?
c. What is the total conversion cost and prime cost?
3a. Total manufacturing cost 3b. Total nonmanufacturing cost 3c. Total conversion cost Total prime cost
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:
| Direct materials | $ | 82,000 | |||||||||||||||||||||
| Direct labor | $ | 41,500 | |||||||||||||||||||||
| Variable manufacturing overhead | $ | 20,200 | |||||||||||||||||||||
| Fixed manufacturing overhead | 31,900 | ||||||||||||||||||||||
| Total manufacturing overhead | $ | 52,100 | |||||||||||||||||||||
| Variable selling expense | $ | 14,600 | |||||||||||||||||||||
| Fixed selling expense | 23,200 | ||||||||||||||||||||||
| Total selling expense | $ | 37,800 | |||||||||||||||||||||
| Variable administrative expense | $ | 5,300 | |||||||||||||||||||||
| Fixed administrative expense | 27,600 | ||||||||||||||||||||||
| Total administrative expense | $ | 32,900 | |||||||||||||||||||||
| 3. With respect to cost classifications for manufacturers: a. What is the total manufacturing cost? b. What is the total nonmanufacturing cost? c. What is the total conversion cost and prime cost?
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Related questions
Kubin Companyâs relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 units, its average costs per unit are as follows:
| Average Cost per Unit | |||||||||||||||||||||||||||||
| Direct materials | $ | 8.10 | |||||||||||||||||||||||||||
| Direct labor | $ | 5.10 | |||||||||||||||||||||||||||
| Variable manufacturing overhead | $ | 2.60 | |||||||||||||||||||||||||||
| Fixed manufacturing overhead | $ | 6.10 | |||||||||||||||||||||||||||
| Fixed selling expense | $ | 4.60 | |||||||||||||||||||||||||||
| Fixed administrative expense | $ | 3.60 | |||||||||||||||||||||||||||
| Sales commissions | $ | 2.10 | |||||||||||||||||||||||||||
| Variable administrative expense | $ | 1.60 | |||||||||||||||||||||||||||
| 3. Assume the cost object is the companyâs various sales representatives. Furthermore, assume that the company spent $82,800 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 representativesâ compensation. a. When the company sells 23,000 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 23,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
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Kubin Companyâs relevant range of production is 25,000 to 33,500 units. When it produces and sells 29,250 units, its average costs per unit are as follows:
| Average Cost per Unit | ||
| Direct materials | $ | 8.50 |
| Direct labor | $ | 5.50 |
| Variable manufacturing overhead | $ | 3.00 |
| Fixed manufacturing overhead | $ | 6.50 |
| Fixed selling expense | $ | 5.00 |
| Fixed administrative expense | $ | 4.00 |
| Sales commissions | $ | 2.50 |
| Variable administrative expense | $ | 2.00 |
Required:
2. Assume the cost object is the Manufacturing Department and that its total output is 29,250 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?
2. Assume the cost object is the Manufacturing Department and that its total output is 29,250 units.
a. How much total manufacturing cost is directly traceable to the Manufacturing Department? (Round per unit values to 2 decimal places.)
b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?
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3. Assume the cost object is the companyâs various sales representatives. Furthermore, assume that the company spent $117,000 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 representativesâ compensation.
a. When the company sells 29,250 units, what is the total direct selling expense that can be readily traced to individual sales representatives?
b. When the company sells 29,250 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
3. Assume the cost object is the companyâs various sales representatives. Furthermore, assume that the company spent $117,000 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 representativesâ compensation.
a. When the company sells 29,250 units, what is the total direct selling expense that can be readily traced to individual sales representatives? (Round per unit value to 2 decimal places.)
b. When the company sells 29,250 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
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