Question
Martinez Companys relevant range of production is 8,500 units to 13,500 units. When it produces and sells 11,000 units, its unit costs are as follows:
Martinez Companys relevant range of production is 8,500 units to 13,500 units. When it produces and sells 11,000 units, its unit costs are as follows:
Amount Per Unit | ||||
Direct materials | $ | 6.40 | ||
Direct labor | $ | 3.90 | ||
Variable manufacturing overhead | $ | 1.40 | ||
Fixed manufacturing overhead | $ | 4.40 | ||
Fixed selling expense | $ | 3.40 | ||
Fixed administrative expense | $ | 2.10 | ||
Sales commissions | $ | 1.10 | ||
Variable administrative expense | $ | 0.55 | ||
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1.
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Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units?
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2. For financial accounting purposes, what is the total amount of period costs incurred to sell 11,000 units?
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3. If 9,000 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)
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4. If 13,000 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)
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5. If 9,000 units are sold, what is the total amount of variable costs related to the units sold?
6.
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6. If 13,000 units are sold, what is the total amount of variable costs related to the units sold?
7.
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7. If 9,000 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)
8.
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8. If 13,000 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)
9.
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9. If 9,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
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10. If 13,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
11.
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11-a. If 9,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?
11-b. If 9,000 units are produced, What is this total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)
12.
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12-a. If 13,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?
12-b. If 13,000 units are produced, what is this total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)
13.
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13. If the selling price is $22.40 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)
14.
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Required:
14-a. If 12,000 units are produced, what are the total amounts of direct manufacturing costs incurred to support this level of production?
14-b. If 12,000 units are produced, what are the total amounts of indirect manufacturing costs incurred to support this level of production?
15.
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15. What total incremental cost will Martinez incur if it increases production from 11,000 to 11,001 units? (Round your answer to 2 decimal places.)
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