Martinez Company's relevant range of production is 15,000 units to 25,000 units. When it produces and sells 20,000 units, its unit costs are as follows: Amount Per UnitDirect materials $ 6.24 Direct labour $ 3.74 Variable manufacturing overhead $ 1.74 Fixed manufacturing overhead $ 5.24 Fixed selling expense $ 4.24 Fixed administrativeexpense $ 3.24 Sales commissions $ 1.74 Variable administrative expense $ 0.87 Required: If 16,000 units are produced, what is the total amount of fixed manufacturing costincurred to support this level of production?

VARIABLE COST Variable Cost is a cost that varies with the level of output.variable costs include…

Answered: Martinez Company's relevant range of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Dake Corporation's relevant range of activity is 2,900 units to 7,500 units. When it produces and sells 5,200 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.50 Direct labor $ 3.40 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 3.50 Fixed selling expense $ 0.85 Fixed administrative expense $ 0.55 Sales commissions $ 0.65 Variable administrative expense $ 0.55 If 4,200 units are produced, the total amount of direct manufacturing cost incurred is closest to:
Martinez Company’s 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 $ 5.50 Direct labor $ 3.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 2.50 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 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.)
Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct Materials $5.30 Direct Labor $3.65 Variable Manufacturing Overhead $1.50 Fixed Manufacturing Overhead $3.90 Fixed Selling Expense $0.75 Sales Commissions $0.50 Variable Administrative Expense $0.50 Fixed Administrative Expense $0.60 For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units?
Please help me to solve this problem
Mega Corporation's relevant range of activity is 15,000 units to 20,000 units. When it produces and sells 15,000 units, its average costs per unit are as follows: Average Cost per Unit $5.90 $4.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $1.95 $10.00 O D. $26.20 $4.55 $1,90 $ 0.70 $0.75 If the selling price is $40.00 per unit, the contribution margin per unit sold is closest to: OA$13.95 OB. $6.50 OC. (3025)
The following costs related to Lillian Company: Variable Costs per unit: Direct materials $2.50 Direct labor $0.75 Overhead $1.25 Selling & Administrative $1.50 Fixed Costs: Overhead $10,000 Selling & Administrative $5,000 Each unit sells for $15.00. At a sales volume of 15,000 units, what is Lillian Company’s total cost?
Skolnick Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.00 Direct labor $ 4.20 Variable manufacturing overhead $ 1.30 Fixed manufacturing overhead $ 126,000 Sales commissions $ 1.50 Variable administrative expense $ 0.35 Fixed selling and administrative expense $ 41,400 Required: a. If 9,000 units are produced, what is the total amount of direct manufacturing cost incurred? (Do not round intermediate calculations.) b. If 9,000 units are produced, what is the total amount of indirect manufacturing costs incurred?
Dinesh Bhai
Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.) Contribution margin per pound Alpha Beta $ 40 $ 15 30 30 18 16 26 29 23 19 26 21 $ 163 $ 130 Alpha Beta
Martinez Company's 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 Foundational 1-6 (Static) 6. If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold?
Martinez Company’s 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 $ 6.50 Direct labor $ 4.00 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 3.50 Fixed administrative expense $ 2.20 Sales commissions $ 1.20 Variable administrative expense $ 0.45 9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
Martinez Company’s 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 $ 5.50 Direct labor $ 3.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 2.50 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 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.)

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS