A company provided the following information on the average cost per unit: Direct materials $30.00 Direct labour $20.00 Variable manufacturing overhead $5.00 Fixed manufacturing costs $8.00 fixed selling expenses $6.00 Fixed administrative expenses $7.00 Sales commissions $4.00 Variable administrative expenses $3.00 Total fixed selling expenses are allocated as follows: $125,000 in promotions and the rest in sales salaries If the

Sep 8, 2023

A company provided the following information on the average cost per unit:

Direct materials

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A company provided the following information on the average cost per unit: Direct materials $30.00 Direct labour $20.00 Variable manufacturing overhead $5.00 Fixed manufacturing costs $8.00 fixed selling expenses $6.00 Fixed administrative expenses $7.00 Sales commissions $4.00 Variable administrative expenses $3.00 Total fixed selling expenses are allocated as follows: $125,000 in promotions and the rest in sales salaries If the
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$30.00

Direct labour

$20.00

Variable manufacturing overhead

$5.00

Fixed manufacturing costs

$8.00

fixed selling expenses

$6.00

Fixed administrative expenses

$7.00

Sales commissions

$4.00

Variable administrative expenses

$3.00

Total fixed selling expenses are allocated as follows:

$125,000 in promotions and the rest in sales salaries

If the company uses sales representatives as a cost object and sells 50,000 units, calculate direct selling expenses are and indirect selling expenses.

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