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 | |
Required: | |
1. | For financial accounting purposes, what is the total amount of product costs incurred to make 10,400 units? |
2. | For financial accounting purposes, what is the total amount of period costs incurred to sell 10,400 units |
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? |
6. | If 12,900 units are sold, what is the total amount of variable costs related to the units sold? |
7. | If 8,400 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.) |
8. | If 12,900 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.) |
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? |
11-a. | If 8,400 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? |
11-b. | If 8,400 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 12,900 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? |
12-b. | If 12,900 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 $22.60 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.) |
14-a. | If 11,400 units are produced, what are the total amount of direct manufacturing costs incurred to support this level of production |
14-b. | If 11,400 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 10,400 to 10,401 units? (Round your answer to 2 decimal places.) |
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