Martinez Company_relevant range of production

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Description

Martinez Company’s relevant
range of production is 7,500 units to 12,500 units. When it produces and sells
10,000 units, its unit costs are as follows:
Amount
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 cost
incurred to make 10,000 units?
2.)For
financial accounting purposes, what is the total amount of period costs
incurred to sell 10,000 units?
3.)If
8,000 units are sold, what is the variable cost per unit sold?
4.)If
12,500 units are sold, what is the variable cost per unit sold?
5.)If
8,000 units are sold, what is the total amount of variable costs related to the
units sold?
6.)If
12, 500 units are sold, what is the total amount of variable costs related to
the units sold?
7.)If
8,000 units are produced, what is the average fixed manufacturing cost per unit
produced?
8.)If
12,500 units are produced, what is the average fixed manufacturing cost per
unit produced?
9.)If
8,000 units are produced, what is the total amount of fixed manufacturing cost
incurred to support this level of production?
10.)If
12,500 units are produced, what is the total amount of fixed manufacturing cost
incurred to support this level of production?
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 the total amount
expressed on a per unit basis?
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 the total amount
expressed on a per unit basis?
13.)If
selling price is $22 per unit, what is the contribution margin per unit sold?
14.)If
11,000 units are produced, what are the total amounts of direct and indirect
manufacturing costs incurred to support this level of production?
15.) What
total incremental cost will Martinez incur if it increases production from
10,000 to 10, 001 units?

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