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 | $ | 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 |
if i am given this information and it is based on 12,000 units produced how would i apply it to:
1. 10,000 units are sold, what is the variable cost per unit sold?
2.
If 10,000 units are sold, what is the total amount of variable costs related to the units sold? |
3.
If 10,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? 4.
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started