Question
Martinez company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average cost per unit are
Martinez company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average cost per unit are as follows
direct materials $6.40 direct labor $3.90 variable manufacturing overhead $1.40 fixed manufacturing overhead $4.00 fixed selling expense $3.40 fixed administrative expense $2.10 sales commission $1.10 variable administrative expenses $0.55
11) if 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?
total manufacturing over head cost- manufacturing overhead per unit-
12) If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? what is this total amount expressed on a per unit basis?
total manufacturing overhead cost- manufacturing overhead unit-
13) if selling price is $22.40 per unit, what is the contribution margin per unit?
contribution margin per unit-
14) if 12,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production?
total direct manufacturing cost- total indirect manufacturing cost-
Step by Step Solution
There are 3 Steps involved in it
Step: 1

Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2

Step: 3

Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started