Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells
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Question:
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 | $ 5.20 |
Direct labor | $ 2.70 |
Variable manufacturing overhead | $ 1.50 |
Fixed manufacturing overhead | $ 4.00 |
Fixed selling expense | $ 2.20 |
Fixed administrative expense | $ 2.00 |
Sales commissions | $ 1.00 |
Variable administrative expense | $ 0.50 |
If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.)
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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