Question
Martinez Companys relevant range of production is 9,100 units to 14,100 units. When it produces and sells 11,600 units, its unit costs are as follows:
Martinez Companys relevant range of production is 9,100 units to 14,100 units. When it produces and sells 11,600 units, its unit costs are as follows:
Amount Per Unit | |||||||||||||||||||||||||
Direct materials | $ | 7.00 | |||||||||||||||||||||||
Direct labor | $ | 4.50 | |||||||||||||||||||||||
Variable manufacturing overhead | $ | 1.40 | |||||||||||||||||||||||
Fixed manufacturing overhead | $ | 5.00 | |||||||||||||||||||||||
Fixed selling expense | $ | 4.00 | |||||||||||||||||||||||
Fixed administrative expense | $ | 2.10 | |||||||||||||||||||||||
Sales commissions | $ | 1.10 | |||||||||||||||||||||||
Variable administrative expense | $ | 0.55 | |||||||||||||||||||||||
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