Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $ 5.90
Direct labor $ 3.40
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 3.90
Fixed selling expense $ 2.90
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?

4. If 12,000 units are sold, what is the variable cost per unit sold?

5. If 10,000 units are sold, what is the total amount of variable costs related to the units sold?

6. If 12,000 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?

8. If 12,000 units are produced, what is the average fixed manufacturing cost per unit produced?

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 12,000 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 this total amount of manufacturing overhead cost expressed on a per unit basis?

12-a.If 12,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?

12-b. If 12,000 units are produced, what is this total amount of manufacturing overhead cost expressed on a per unit basis?

13. If the selling price is $21.90 per unit, what is the contribution margin per unit sold?

14-a.If 10,000 units are produced, what are the total amounts of direct manufacturing costs incurred to support this level of production?

14-b.If 10,000 units are produced, what are the total amounts 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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting The Theoretical And Regulatory Framework

Authors: D A V I D Alexander

2nd Edition

0412357909, 978-0412357909

More Books

Students also viewed these Accounting questions

Question

What is polarization? Describe it with examples.

Answered: 1 week ago

Question

Explain what is meant by the terms unitarism and pluralism.

Answered: 1 week ago