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martinez company's relevant range of production is 7500 unit to 12500 units. when it products and...

martinez company's relevant range of production is 7500 unit to 12500 units. when it products and sells 10000 units, its average cost unit are as follow:

Ave cost per unit

direct materials $5.40

direct labor 2.90

variable manufacturing overhead 1.60

fixed manufacturing overhead 4.00

fixed selling expenses 2.40

fixed administrative expense 2.10

sales commissions 1.10

variable administrative expense 0.55

If 12500 unit are produced, what is the average fixed manufacturing cost per unit produced? (round your answer to 2 decimal places.)

If 12500 units are produced and sold what is the total amount of variable cost related to the units produced and sold. (do not round intermediate calculations)

If 8000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level production?

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If 12500 unit are produced, what is the average fixed manufacturing cost per unit produced?
Fixed manufacturing overhead $ 4 Per Unit at 10,000 Unit Level
Hence Total Fixed Manufacturing Cost $ 4*10,000 $                        40,000
Per Unit at 12,500 Unit 40000/12500 $                            3.20
If 12500 units are produced and sold what is the total amount of variable cost related to the units produced and sold
Variable Cost per Unit:
Per Unit Total
Direct Material $                            5.40
Direct Labor $                            2.90
Variable Manufacturing overhead $                            1.60
Total Variable Manufacturing Cost $                            9.90 $ 123,750.00
Sales Commission $                            1.10
Variale Admin Expense $                            0.55
Total Variable Non Manu Cost $                            1.65 $   20,625.00
Total Variable Cost $                          11.55 $ 144,375.00
If 8000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level production?
Since Fixed manufacturing cost will remain same in total for 7500 units to 12500 units,
Answer is 4*10000 $        40,000

ekkarill92 answered 1 year ago
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