Ch. 1 Pre-Quiz
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?
$135,000: *DM+DL+Var manu over *multiply by units produced *then add that by fixed manu over multiplied by units produced
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 If the selling price is $21.30 per unit, what is the contribution margin per unit?
Selling price -DM+DL+VMO+Sales com+var admin expense
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold?
$139,375: (DM+DL+V manu over+sales com+var admin expense) x # units sold
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units?
$61,500: *sales com+var admin expense multiplied by units sold *then add that to fixed selling + fixed admin costs multiplied by units sold
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 If 8,000 units are produced and sold, what is the total amount of variable costs related to the units produced and sold?
$89,200: (DM+DL+V manu over+sales com+var admin exp) x # units sold
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units?
$9.50 DM+DL+var manu overhead per unit
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 If 12,500 units are produced and sold, what is the variable cost per unit produced and sold?
11.15: DM+DL+ var manu over+sales com+var admin expense
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 If 8,000 units are produced and sold, what is the variable cost per unit produced and sold?
11.15: DM+DL+ var manu over+sales com+var admin expense
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced?
3.20: avg fixed manu over per unit x number untis calc / number produced
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
40,000: avg fixed manu over per unit x number units used to calc
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
40,000: avg fixed manu over per unit x total fixed manu cost
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?
5.00: avg fixed manu over per unit x number used to calc / # produced
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 If 10,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production?
Total Direct: 81,000 *DM+DL x number units produced Total Indirect: 54,000 *fixed manu over x number units + variable over x units produced
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 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?
Total manu over cost: 51,200 * avg fixed manu over x number units used to calc + var overhead per units x number units produced Manu overhead per unit:6.40 *total manu over cost / manu overhead per unit
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: Direct materials$5.30 Direct labor$2.80 Variable manufacturing overhead$1.40 Fixed manufacturing overhead$4.00 Fixed selling expense$2.30 Fixed administrative expense$2.20 Sales commissions$1.20 Variable administrative expense$0.45 If 12,500 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?
Total manu overhead cost: 57,500 *fixed manu over x number units used to calc fixed cost + var over per unit x number units produced Manu overhead per unit: 4.60 *total manu overhead / number units produced
