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Leeks Company currently sells 90,000 units and has an average cost per unit of:

ID: 2537469 • Letter: L

Question

Leeks Company currently sells 90,000 units and has an average cost per unit of: Direct materials $ 8.00 Direct labor $ 9.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 6.00 Fixed selling expenses $ 4.00 Fixed administrative expenses $ 3.50 Sales commissions $ 3.00 Variable administrative expenses $ 2.00 Selling expenses are comprised of $75,000 in advertising and sales salaries for the remainder. If sales representatives are the cost object, what are direct selling expenses Blank 1 and indirect selling expenses Blank 2 . You must format your answers as follows: $x,xxx

Explanation / Answer

Working:

Direct selling expenses 555000 Indirect selling expenses 75000
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