Question
Martinez Companys relevant range of production is 10,300 units to 15,300 units. When it produces and sells 12,800 units, its unit costs are as follows:
| Martinez Companys relevant range of production is 10,300 units to 15,300 units. When it produces and sells 12,800 units, its unit costs are as follows: |
| Amount Per Unit | |||
| Direct materials | $ | 5.60 | |
| Direct labor | $ | 3.10 | |
| Variable manufacturing overhead | $ | 1.40 | |
| Fixed manufacturing overhead | $ | 3.60 | |
| Fixed selling expense | $ | 2.60 | |
| Fixed administrative expense | $ | 2.20 | |
| Sales commissions | $ | 1.20 | |
| Variable administrative expense | $ | 0.45 | |
1.
| Required: | |
| 1. | For financial accounting purposes, what is the total amount of product costs incurred to make 12,800 units? |
| 2. | For financial accounting purposes, what is the total amount of period costs incurred to sell 12,800 units? |
| 3. | If 10,800 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.) |
| 4. | If 15,300 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.) |
| 5. | If 10,800 units are sold, what is the total amount of variable costs related to the units sold? |
| 6. | If 15,300 units are sold, what is the total amount of variable costs related to the units sold? |
| 7. | If 10,800 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.) |
| 8. | If 15,300 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.) |
| 9. | If 10,800 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? |
| 10. | If 15,300 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? |
| 11-a. | If 10,800 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? |
| 11-b. | If 10,800 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 15,300 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? |
| 12-b. | If 15,300 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 $21.60 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.) |
| Required: |
| 14-a. | If 10,800 units are produced, what are the total amount of direct manufacturing costs incurred to support this level of production? |
| 14-b. | If 10,800 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 12,800 to 12,801 units? (Round your answer to 2 decimal places.) |
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Auditing Cases An Interactive Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
4th Edition
0132423502, 978-0132423502
