Question
Martinez Companys relevant range of production is 9,500 units to 14,500 units. When it produces and sells 12,000 units, its unit costs are as follows:
Martinez Companys relevant range of production is 9,500 units to 14,500 units. When it produces and sells 12,000 units, its unit costs are as follows: Amount Per Unit Direct materials $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.20
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
1. For financial accounting purposes, what is the total amount of product costs incurred to make 12,000 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 12,000 units?
3. If 10,000 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)
4. If 14,500 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)
5. If 10,000 units are sold, what is the total amount of variable costs related to the units sold?
6. If 14,500 units are sold, what is the total amount of variable costs related to the units sold?
7. If 10,000 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)
8. If 14,500 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)
9. If 10,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
10. If 14,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
11-a. If 10,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?
11-b.
If 10,000 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 14,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?
12-b. If 14,500 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 $22.20 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)
14-a. If 10,000 units are produced, what are the total amount of direct manufacturing costs incurred to support this level of production?
14-b. If 10,000 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 12,000 to 12,001 units? (Round your answer to 2 decimal places.)
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