Question
[The following information applies to the questions displayed below.] Martinez Companys relevant range of production is 9,500 units to 14,500 units. When it produces and
[The following information applies to the questions displayed below.] 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 Required: 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?
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