Question
Martinez Companys relevant range of production is 10,100 units to 15,100 units. When it produces and sells 12,600 units, its unit costs are as follows:
Martinez Companys relevant range of production is 10,100 units to 15,100 units. When it produces and sells 12,600 units, its unit costs are as follows:
Amount
Per Unit
Direct materials $ 5.90
Direct labor $ 3.40
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 3.90
Fixed selling expense $ 2.90
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
Required:
1.
For financial accounting purposes, what is the total amount of product costs incurred to make 12,600 units?
2.
For financial accounting purposes, what is the total amount of period costs incurred to sell 12,600 units?
3.
If 10,600 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)
4.
If 15,100 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal
5. If 10,600 units are sold, what is the total amount of variable costs related to the units sold?
6. If 15,100 units are sold, what is the total amount of variable costs related to the units sold?
7.
If 10,600 units are produced, what is the average fixed manufacturing cost per unit produced? (Round
8.
If 15,100 units are produced, what is the average fixed manufacturing cost per unit produced? (Round
9.
If 10,600 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
10.
If 15,100 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
11-a.
If 10,600 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?
11-b.
If 10,600 units are produced, what is the total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)
12-a.
If 15,100 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?
12-b.
If 15,100 units are produced, what is the total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)
13.
If the selling price is $21.90 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)
14-a.
If 10,600 units are produced, what are the total amount of direct manufacturing costs incurred to support this level of production?
14-b.
If 10,600 units are produced, what are the total amount of indirect manufacturing costs incurred to support this level of production?
15.
What total incremental cost will Martinez incur if it increases production from 12,600 to 12,601 units? (Round your answer to 2 decimal places.)
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