Let's break down each requirement step by step: --- ## **Required 1: Cost Object = Units of Production** ### **a. Total Direct Manufacturing Cost for 24,500 Units** **Direct manufacturing costs** include: - Direct materials - Direct labor #### **Calculation:** - Direct materials per unit = $8.20 - Direct labor per unit = $5.20 Total direct manufacturing cost per unit = $8.20 + $5.20 = **$13.40** For 24,500 units: \[ \text{Total Direct Manufacturing Cost} = 24,500 \times \$13.40 = \$328,300 \] --- ### **b. Total Indirect Manufacturing Cost for 24,500 Units** **Indirect manufacturing costs** include: - Variable manufacturing overhead - Fixed manufacturing overhead #### **Calculation:** - Variable manufacturing overhead per unit = $2.70 - Fixed manufacturing overhead per unit = $6.20 Total indirect manufacturing cost per unit = $2.70 + $6.20 = **$8.90** For 24,500 units: \[ \text{Total Indirect Manufacturing Cost} = 24,500 \times \$8.90 = \$218,050 \] --- ## **Required 2: Cost Object = Manufacturing Department Output (24,500 units)** ### **a. Total Manufacturing Cost Directly Traceable to the Manufacturing Department** Direct costs: - Direct materials - Direct labor - Variable manufacturing overhead #### **Calculation:** Direct materials per unit = $8.20 Direct labor per unit = $5.20 Variable manufacturing overhead per unit = $2.70 Total direct traceable cost per unit = $8.20 + $5.20 + $2.70 = **$16.10** For 24,500 units: \[ \text{Total Directly Traceable Manufacturing Cost} = 24,500 \times \$16.10 = \$394,450 \] --- ### **b. Total Manufacturing Cost as Indirect Cost to the Manufacturing Department** Indirect cost: - Fixed manufacturing overhead Fixed manufacturing overhead per unit = $6.20 For 24,500 units: \[ \text{Total Indirect Manufacturing Cost} = 24,500 \times \$6.20 = \$151,900 \] --- ## **Required 3: Cost Object = Various Sales Representatives** ### **Given:** - Total fixed selling expense per unit = $4.40 - For 24,500 units: $4.40 × 24,500 = $107,800 - Of this, $90,650 is for advertising (not traceable to individual reps) - The rest is the fixed portion of sales reps' compensation #### **Other selling expenses:** - Sales commissions (per unit) = $2.20 (traceable to individual reps) --- ### **a. Total Direct Selling Expense Readily Traceable to Individual Sales Representatives** Direct (traceable) selling expenses: - Sales commissions \[ \text{Direct Selling Expense} = \text{Sales Commissions per unit} \times \text{Units Sold} = \$2.20 \times 24,500 = \$53,900 \] --- ### **b. Total Indirect Selling Expense Not Readily Traceable to Individual Sales Representatives** Indirect (not traceable) selling expenses: - Fixed selling expense (portion for advertising) - Fixed selling expense (portion for sales reps' fixed compensation) #### **Calculation:** - Fixed selling expense total = $4.40 × 24,500 = $107,800 - Advertising = $90,650 - Remainder = $107,800 - $90,650 = $17,150 (fixed portion of reps' compensation) Total indirect selling expense: \[ \text{Total Indirect Selling Expense} = \$90,650 + \$17,150 = \$107,800 \] --- ## **Summary Table** | Requirement | Cost Object | Direct Cost | Indirect Cost | Amount | |-------------|-------------|----------------|--------------------|-------------| | 1a | Units | Direct materials + labor | - | $328,300 | | 1b | Units | - | Var. + Fixed MOH | $218,050 | | 2a | Dept. Output| DM + DL + Var. MOH | - | $394,450 | | 2b | Dept. Output| - | Fixed MOH | $151,900 | | 3a | Sales Reps | Sales Commissions | - | $53,900 | | 3b | Sales Reps | - | Total Fixed Selling | $107,800 | --- **Let me know if you need any step explained in more detail!**