Chapter 1 Homework
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 $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 If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.)
(DM + DL +Variable manu overhead + Sales com + Variable admin expense) * # units sold (6.7 + 4.2 + 1.4 + 1.1 + 0.55) * 12,500 = 174,375
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 $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 If 8,000 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.)
(DM + DL +Variable manu overhead + Sales com + Variable admin expense) * # units sold (6.7 + 4.2 + 1.4 + 1.1 + 0.55) * 8,000 = 111,600
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 $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 For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.)
(DM+DL+var manu overhead per unit+fixed manu overhead)*units produced (6.7 + 4.2 + 1.4 + 4) * 10,000 = 163,000
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 $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 If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?
(Fixed manu overhead * Units sold that are used for calculation) / # of units produced (4 * 10,000) / 8,000 = 5
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 $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 If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)
(Fixed manu overhead * Units sold used from calc) / # of units produced (4 * 10,000) / 12,500 = 3.2
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 $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 For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (Do not round intermediate calculations.)
(Sales commissions + Variable administrative expense + Fixed selling expense + Fixed administrative expense) * Units sold (1.1 + 0.55 + 3.7 + 2.1) * 10,000 = 74,500
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 $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 What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answer to 2 decimal places.)
DM + DL + Variable manu overhead 6.7 + 4.2 + 1.4 = 12.3
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 $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 If 12,500 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.)
DM + DL + Variable manu overhead + Sales com + Variable admin expense 6.7 + 4.2 + 1.4 + 1.1 + 0.55 = 13.95
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 $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 If 8,000 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.)
DM + DL + Variable manu overhead + Sales com + Variable admin expense 6.7 + 4.2 + 1.4 + 1.1 + 0.55 = 13.95
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 $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 If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
Fixed manu overhead per unit * Units used in calc (4 *10,000) 40,000
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 $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 If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
Fixed manu overhead per unit * Units used in calc (4 *10,000) 40,000
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 $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 If the selling price is $22.70 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Selling price - DM - DL - Variable manu overhead - Sales commission - Variable admin expense (22.7 - 6.7 - 4.2 - 1.4 - 1.1 - 0.55) = 8.75
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 $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 If 12,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (Do not round intermediate calculations.)
Total Direct: (DM + DL) * # units produced (6.7 + 4.2) * 12,000 = 130,800 Total Indirect: (Fixed manu overhead * # of units in calc) + (Variable manu overhead * # of units produced) (4 *10,000) + (1.4 * 12,000) = 56,800
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 $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 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? (Round your "per unit" answer to 2 decimal places.)
Total manu overhead Cost: (Fixed manu overhead * units used in calc) + (Variable manu overhead * # of units produced) (4 *10,000) + (1.4 * 12,500) = 57,500 Total Amount Expressed: (Total manu overhead cost/ # of units produced) (57,500 / 12,500) = 4.6
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 $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 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.)
Total manu overhead Cost: (Fixed manu overhead * units used in calc) + (Variable manu overhead * # of units produced) (4 *10,000) + (1.4 * 8,000) = 51,200 Total Amount Expressed: (Total manu overhead cost/ # of units produced) (51,200 / 8,000) = 6.4
