Martinez Company's relevant range of production is 8,500 units to 13,500 units. When it produces and sells 11,000 units, its unit costs are as follows:
|
|
Amount
Per Unit
|
|
Direct materials
|
$
|
5.70
|
|
|
Direct labor
|
$
|
3.20
|
|
|
Variable manufacturing overhead
|
$
|
1.60
|
|
|
Fixed manufacturing overhead
|
$
|
3.70
|
|
|
Fixed selling expense
|
$
|
2.70
|
|
|
Fixed administrative expense
|
$
|
2.10
|
|
|
Sales commissions
|
$
|
1.10
|
|
|
Variable administrative expense
|
$
|
0.55
|
|
|
1. Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units?
TOTAL PRODUCTION COST = _________?
2.
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 11,000 units?
TOTAL PERIOD COST = _________?
3.
3. If 9,000 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)
VARIABLE COST PER UNIT SOLD = _________?
4.
4. If 13,000 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)
VARIABLE COST PER UNIT SOLD = _________?
5.
5. If 9,000 units are sold, what is the total amount of variable costs related to the units sold?
TOTAL VARIABLE COST = _________?
6.
6. If 13,000 units are sold, what is the total amount of variable costs related to the units sold?
TOTAL PRODUCTION COST = _________?
7.
7. If 9,000 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 = _________?
8.
8. If 13,000 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 = _________?
9.
9. If 9,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
TOTAL FIXED MANUFACTURING COST = _________?
10.
10. If 13,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
TOTAL FIXED MANUFACTURING COST = _________?
11.
11-a. If 9,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?
TOTAL MANUFACTURING OVERHEAD COST = _________?
11-b. If 9,000 units are produced, What is this total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)
MANUFACTURING OVERHEAD PER UNIT = _________?
12.
12-a. If 13,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?
TOTAL MANUFACTURING OVERHEAD COST = _________?
12-b. If 13,000 units are produced, what is this total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)
MANUFACTURING OVERHEAD PER UNIT = _________?
13.
13. If the selling price is $21.70 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)
CONTRIBUTION MARGIN PER UNIT = _________?
14.
Required:
14-a. If 12,000 units are produced, what are the total amounts of direct manufacturing costs incurred to support this level of production?
TOTAL DIRECT MANUFACTURING COST = _________?
14-b. If 12,000 units are produced, what are the total amounts of indirect manufacturing costs incurred to support this level of production?
TOTAL INDIRECT MANUFACTURING COST = _________?
15. What total incremental cost will Martinez incur if it increases production from 11,000 to 11,001 units? (Round your answer to 2 decimal places.)
INCREMENTAL COST PER UNIT PRODUCED= _________?