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 | $ | 6.50 | |
Direct labor | $ | 4.00 | |
Variable manufacturing overhead | $ | 1.60 | |
Fixed manufacturing overhead | $ | 4.50 | |
Fixed selling expense | $ | 3.50 | |
Fixed administrative expense | $ | 2.20 | |
Sales commissions | $ | 1.20 | |
Variable administrative expense | $ | 0.45
|
14-a. | If 10,000 units are produced, what are the total amounts of direct 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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