Question
[The following information applies to the questions displayed below.] Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and
[The following information applies to the questions displayed below.]
Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:
Average Cost per Unit | |
Direct Materials | $6.00 |
Direct labor | $3.50 |
Variable manufacturing overhead | $1.50 |
Fixed manufacturing overhead | $4.00 |
Fixed selling expense | $3.00 |
Fixed administrative expense | $2.00 |
Sales commissions | $1.00 |
Variable administrative expense | $0.50 |
1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?
Total Product Cost | _________ |
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (Do not round intermediate calculations.)
Total Period Cost | _________ |
3. If 8,000 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.)
Variable Cost per Unit Sold | _________ |
4. If 12,500 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.)
Variable Cost per Unit Sold | _________ |
5. If 8,000 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.)
Total Variable Costs | ________ |
6. If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.)
Total Variable Costs | ________ |
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