Question
In: Accounting
Martinez Company’s relevant range of production is 8,900 units to 13,900 units. When it produces and...
|
Martinez Company’s relevant range of production is 8,900 units to 13,900 units. When it produces and sells 11,400 units, its unit costs are as follows: |
|
Amount Per Unit |
|||
| Direct materials | $ | 6.70 | |
| Direct labor | $ | 4.20 | |
| Variable manufacturing overhead | $ | 1.40 | |
| Fixed manufacturing overhead | $ | 4.70 | |
| Fixed selling expense | $ | 3.70 | |
| Fixed administrative expense | $ | 2.10 | |
| Sales commissions | $ | 1.10 | |
| Variable administrative expense | $ | 0.55 | |
| 14-a. |
If 12,400 units are produced, what are the total amount of direct manufacturing costs incurred to support this level of production |
| 14-b. |
If 12,400 units are produced, what are the total amount of indirect manufacturing costs incurred to support this level of production? |
| 15. |
What total incremental cost will Martinez incur if it increases production from 11,400 to 11,401 units? (Round your answer to 2 decimal places.) |
Solutions
Expert Solution
| On production of 11400units | On production of 12400units | ||
| Particulars | Amount per unit in $ | Amount per unit in $ | |
| Direct Materials | 6.7 | 6.7/11400*12400= $ 7.29 | |
| Direct Labour | 4.2 | 4.2/11400*12400= $4.57 | |
| Variable Manufacturing Overhead | 1.4 | 1.4/11400*12400= $1.52 | |
| Fixed Manufacturing Overhead | 4.7 | ||
| Fixed Selling expense | 3.7 | ||
| Fixed administrative expense | 2.1 | ||
| Sales commissions | 1.1 | ||
| Variable Administrative expense | 0.55 | ||
| 14. a) | If 12,400 units are produced, the total amount of direct manufacturing costs incurred to support this level of production will be | ||
| (Direct Material + Direct Labour) * No. of units | |||
| ($7.29 +$4.57 ) *12400 | $147064 | ||
| 14. b) | If 12,400 units are produced, the total amount of indirect manufacturing costs incurred to support this level of production will be | ||
| Fixed Manufacturing Overhead + (Variable Manufacturing Overhead* No. of units) | |||
| $4.7*11400 +$1.52*12400 | $72428 | ||
| 15 | Total incremental cost which Martinez will incur if it increases production from 11,400 to 11,401 units will be | ||
| Only manufacturing cost that are variable will be incurred additional cost as rest are either fixed or sales & administrative costs. | |||
| (Direct Material+ Direct Labour+ Variable Manufacturing Overhead) | |||
| $6.7+$4.2+$ 1.4 | $12.3 will be the incremental cost | ||
ekkarill92 answered 1 year agoRelated Solutions
Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and...
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 $ 5.70 Direct labor $ 3.20 Variable manufacturing
overhead $ 1.60 Fixed manufacturing overhead $ 4.00 Fixed selling
expense $ 2.70 Fixed administrative expense $ 2.10 Sales
commissions $ 1.10 Variable administrative expense $ 0.55
5. If 8,000 units are produced and sold, what is the total...
Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and...
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
$
6.90
Direct labor
$
4.40
Variable manufacturing overhead
$
1.50
Fixed manufacturing overhead
$
4.00
Fixed selling expense
$
3.90
Fixed administrative expense
$
2.00
Sales commissions
$
1.00
Variable administrative expense
$
0.50
Required:
1. For financial accounting purposes, what is the total amount
of...
Martinez Company’s relevant range of production is 9,500 units to 14,500 units. When it produces and...
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 $ 5.40
Direct labor $ 2.90
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead$ 3.40
Fixed selling expense $ 2.40
Fixed administrative expense $ 2.10
Sales commissions $ 1.10
Variable administrative expense $ 0.55
1.) If the selling price is $21.40 per unit, what is the
contribution margin per unit...
Martinez Company’s relevant range of production is 9,500 units to 14,500 units. When it produces and...
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 $ 5.40
Direct labor $ 2.90
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead$ 3.40
Fixed selling expense $ 2.40
Fixed administrative expense $ 2.10
Sales commissions $ 1.10
Variable administrative expense $ 0.55
1.) If 10,000 units are produced, what is the total amount of
manufacturing overhead cost incurred...
Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and...
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
$
6.70
Direct labor
$
4.20
Variable manufacturing
overhead
$
1.40
Fixed manufacturing
overhead
$
4.00
Fixed selling expense
$
3.70
Fixed administrative
expense
$
2.10
Sales commissions
$
1.10
Variable administrative
expense
$
0.55
9. If 8,000 units are produced, what is the total amount of...
Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and...
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
$
6.40
Direct labor
$
3.90
Variable manufacturing
overhead
$
1.40
Fixed manufacturing
overhead
$
4.00
Fixed selling expense
$
3.40
Fixed administrative
expense
$
2.10
Sales commissions
$
1.10
Variable administrative
expense
$
0.55
For financial accounting purposes, what is the total amount of
product costs...
Martinez Company’s relevant range of production is 9,500 units to 14,500 units. When it produces and...
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...
Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and...
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
$
5.60
Direct labor
$
3.10
Variable manufacturing
overhead
$
1.40
Fixed manufacturing
overhead
$
4.00
Fixed selling expense
$
2.60
Fixed administrative
expense
$
2.20
Sales commissions
$
1.20
Variable administrative
expense
$
0.45
1. For financial accounting purposes, what is the total amount
of product...
Martinez Company’s relevant range of production is 7,900 units to 12,900 units. When it produces and...
Martinez Company’s relevant range of production is 7,900 units
to 12,900 units. When it produces and sells 10,400 units, its unit
costs are as follows:
Amount
Per Unit
Direct materials
$
6.60
Direct labor
$
4.10
Variable manufacturing overhead
$
1.50
Fixed manufacturing overhead
$
4.60
Fixed selling expense
$
3.60
Fixed administrative expense
$
2.00
Sales commissions
$
1.00
Variable administrative expense
$
0.50
Required:
1.
For financial accounting purposes, what is the total amount of
product costs incurred...
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
Per Unit
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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Provide positive feedback: Pay-for-Performance Link. Based on your understanding of linking organization strategy to compensation and...
- On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $45 million,...
- Why is the tracking of supplier performance so important? Why rank suppliers? What is the value...
- What is benchmarking? Discuss some of factors to be considered when using a third-party authority to...
- What are the differences between commercial banking, investment banking and hedge funds? Describe their main functions...
- Case 11A-7 Transfer Pricing; Divisional Performance [LO11-5] Weller Industries is a decentralized organization with six divisions....
- Equivalent Units and Related Costs; Cost of Production Report; Entries Dover Chemical Company manufactures specialty chemicals...
ADVERTISEMENT