Question

Martinez Company’s 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	$	6.80
Direct labour	$	4.30
Variable manufacturing overhead	$	1.60
Fixed manufacturing overhead	$	4.80
Fixed selling expense	$	3.80
Fixed administrative expense	$	2.20
Sales commissions	$	1.20
Variable administrative expense	$	0.45

1. 1. For financial accounting purposes, what is the total amount of product costs incurred to make 12,000 units?

2. . For financial accounting purposes, what is the total amount of period costs incurred to sell 12,000 units?

3. If 10,000 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)

4. If 12,000 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)

5. 5. If 10,000 units are sold, what is the total amount of variable costs related to the units sold?

6. If 12,000 units are sold, what is the total amount of variable costs related to the units sold?

7. If 10,000 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)

8. If 12,000 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)

9. If 10,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

10. If 12,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

11-a. If 10,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?

11-b. If 10,000 units are produced, What is this total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)

12-a. If 12,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?

12-b. If 12,000 units are produced, what is this total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)

13-a. If 10,000 units are produced, what are the total amounts of direct manufacturing costs incurred to support this level of production?

13-b. If 10,000 units are produced, what are the total amounts of indirect manufacturing costs incurred to support this level of production?

14. What total incremental cost will Martinez incur if it increases production from 12,000 to 12,001 units? (Round your answer to 2 decimal places.)

I need my answers in numbers only

Answer 1

1) Product costs = Direct materials + Direct labour + Variable manufacturing overhead + Fixed manufacturing overhead
= $6.8 + $4.30 + $1.60+ $4.80
= $17.5 per unit
For 12000 units = 12000*17.5
= $210000
2) Period costs = Fixed Selling expense + Fixed admin expense + Sales commission + variable admin expense
= $3.80 + $2.20 + $1.20 + $ 0.45
= $7.65 per unit
For 12000 units = 12000 * 7.65
= $91800
3) variable cost per unit is same irrespective of number of units ,
variable costs per unit sold = Direct Materials + Direct labour + Variable manuf overhead + Sales commission + Variable admin exp
= $6.80 + $4.30+ $1.60+ $1.20 + $0.45
		= $14.35 per unit.
4) Variable costs per unit sold remain same = $14.35 per unit.
5) Total variable costs = 10000 units * $14.35
= $143500
6) Total variable costs = 12000 units * $14.35
		= $172200
7) Total Fixed costs = 12000 units * $4.80
= 12000 * $4.80
= $57600
If 10000 units are produced, unit fixed costs = $57600/10000 units
				= $5.76 per unit
8) Fixed manufacuring overhead for 12000 units = $4.80 per unit
9) Fixed manufacturing overhead remains same, irrespective of number of units.
Therefore $57600 is the answer.
10) Fixed manufacturing overhead remains same, irrespective of number of units.
Therefore $57600 is the answer.
11a) Total manufacturing overhead for 10000 units = $57600 + ($1.60*10000)
				= $57600 + $16000
				= $73600
11b) Manufacturing overhead per unit for 10000 units = $73600/10000
= $7.36 per unit
12a) Total manufacturing overhead for 12000 units = $57600 + ($1.60*12000)
				= $76800
12b) Manufacturing overhead per unit for 12000 units = $76800/12000
= $6.4 per unit
13a) Total direct manufacturing overhead for 10000 units = ($6.80+$4.30)*10000 units
					= $111000
13b) Indirect Manufacturing overhead per unit for 10000 units = ($1.60*10000) + $57600
						= $73600
14) Inceremental costs are only variable costs,
Therefore, incremenetal cost = $6.80+ $4.30+$1.60+$1.20+$0.45
		= $14.35 per unit