Question
Martinez Companys relevant range of production is 7,900 units to 12,900 units. When it produces and sells 10,400 units, its unit costs are as follows:
Martinez Companys relevant range of production is 7,900 units to 12,900 units. When it produces and sells 10,400 units, its unit costs are as follows: |
| Amount Per Unit | ||
Direct materials | $ | 6.60 |
|
Direct labor | $ | 4.10 |
|
Variable manufacturing overhead | $ | 1.50 |
|
Fixed manufacturing overhead | $ | 4.60 |
|
Fixed selling expense | $ | 3.60 |
|
Fixed administrative expense | $ | 2.00 |
|
Sales commissions | $ | 1.00 |
|
Variable administrative expense | $ | 0.50 |
|
3. | If 8,400 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.) |
4. | If 12,900 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.) |
5. | If 8,400 units are sold, what is the total amount of variable costs related to the units sold? |
9. | If 8,400 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? |
10. | If 12,900 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? |
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