Question
1-7 Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit
1-7
Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:
| Average Cost per Unit | |||
| Direct materials | $ | 5.20 | |
| Direct labor | $ | 2.70 | |
| Variable manufacturing overhead | $ | 1.50 | |
| Fixed manufacturing overhead | $ | 4.00 | |
| Fixed selling expense | $ | 2.20 | |
| Fixed administrative expense | $ | 2.00 | |
| Sales commissions | $ | 1.00 | |
| Variable administrative expense | $ | 0.50 | |
If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?
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Accounting For Managers And Entrepreneurs
Authors: Charles T. Horngren
9th Edition
1323167897, 9781323167892
