FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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

 

11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.)

__________________________________________________________________________________________

 

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

 

12. If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.)

__________________________________________________________________________________________

 

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

 

13. If the selling price is $21.50 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

 

 
 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
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