Question
Martinez Companys relevant range of production is 10,500 units to 15,500 units. When it produces and sells 13,000 units, its unit costs are as follows:
Martinez Companys relevant range of production is 10,500 units to 15,500 units. When it produces and sells 13,000 units, its unit costs are as follows: |
| Amount Per Unit | ||
Direct materials | $ | 5.30 |
|
Direct labor | $ | 2.80 |
|
Variable manufacturing overhead | $ | 1.40 |
|
Fixed manufacturing overhead | $ | 3.30 |
|
Fixed selling expense | $ | 2.30 |
|
Fixed administrative expense | $ | 2.20 |
|
Sales commissions | $ | 1.20 |
|
Variable administrative expense | $ | 0.45 |
|
14b- | If 11,000 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 13,000 to 13,001 units? (Round your answer to 2 decimal places.) |
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