Question
In: Accounting
Martinez Company’s relevant range of production is 8,300 units to 13,300 units. When it produces and...
|
Martinez Company’s relevant range of production is 8,300 units to 13,300 units. When it produces and sells 10,800 units, its unit costs are as follows: |
|
Amount |
|||
|
Direct materials |
$ |
5.80 |
|
|
Direct labor |
$ |
3.30 |
|
|
Variable manufacturing overhead |
$ |
1.50 |
|
|
Fixed manufacturing overhead |
$ |
3.80 |
|
|
Fixed selling expense |
$ |
2.80 |
|
|
Fixed administrative expense |
$ |
2.00 |
|
|
Sales commissions |
$ |
1.00 |
|
|
Variable administrative expense |
$ |
0.50 |
|
7) If 8,800 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)
Average fixed manufacturing cost per unit produced
8) If 13,300 units are produced, what is the average fixed
manufacturing cost per unit produced?
Average fixed manufacturing cost per unit produced
9) If 8,800 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? Total amount of fixed manufacturing costs
10) If 13,300 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? Total amount of fixed manufacturing costs
13) If the selling price is $21.80 per unit, what is the
contribution margin per unit sold? Contribution margin
per unit
14a) If 11,800 units are produced, what are the total amount of direct manufacturing costs incurred to support this level of production? Total direct manufacturing costs
14b) If 11,800 units are produced, what are the total amount of
indirect manufacturing costs incurred to support this level of
production? Total indirect manufacturing
costs
What total incremental cost will Martinez incur if it increases production from 10,800 to 10,801 units? Incremental cost per unit produced
Solutions
Expert Solution
| 7) If 8800 units are produced, the average fixed cost per unit = 10800 (3.80) / 8800 = $4.664 |
| 8. If 13300 units are produced, the average fixed manufacturing cost is (10800(3.80)/13300=$3.086 |
| 9. If 8800 units are produced, total fixed manufacturing cost is 8800 x $4.664 = $41043 |
| 10.If 13,300 units are produced, total fixed manufacturing cost remains the same at $41043 |
| 13) Contribution Margin Per Unit = Selling Price- Variable cost per Unit |
| = $21.80- ($5.80+$3.30+$1.50+$1+$0.50) |
| $9.70 Pe rUnit |
| 14 a. Total direct manufacturing cost per unit = direct materials + direct labor = ($5.80 + $3.30 ) = $ 9.10 |
| Therefore, If 11,800 units are produced, total direct manufacturing cost is 11,800 x 9.10 = $107380 |
| 14 b. Total Indirect manufacturing cost per = Total Variable Manufacturing Overhead + Total Fixed Manufacturing Overhead |
| =($1.50*11800)+(10800*$3.80)=$58740 |
ekkarill92 answered 1 year agoRelated Solutions
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average costs per unit are as follows:
Average Cost Per Unit
Direct
materials
$
6.40
Direct labor
$
3.90
Variable manufacturing
overhead
$
1.40
Fixed manufacturing
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Fixed selling expense
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3.40
Fixed administrative
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Direct labor
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Variable manufacturing
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Fixed selling expense
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2.60
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Sales commissions
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