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 $ 6.10 $3.60 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions $ 1.40 4.00 $ 3.1e $2.1e $1.10 $ 0.55 Variable administrative expense $0.5s Foundational 1-12 12. 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 declmai places and other answers to the nearest whole doller amount.)

Answer 1

(AMOUNT IN $)

PARTICULARS	DETAILS		UNITS PRODUCED 12500 (c)	AVERAGE COST ON UNITS 12500 (d) = (c) /12500
DIRECT MATERIAL	6.10 x 12500		76250	6.10
DIRECT LABOUR	3.60 x 12500		45000	3.60
VARIABLE MOH	1.40 x 12500		17500	1.40
FIXED MOH	4.00 x 7500		30000	2.40
FIXED SELLING EXPENSES	3.10 x 7500		23250	1.86
FIXED ADMINISTRATION EXPENSES	2.10 x 7500		15750	1.26
SALES COMMISSION	1.10 x 12500		13750	1.10
VARIABLE ADMINISTRATION EXPENSES	0.55 x 12500		6875	0.55
TOTAL			228375	18.27

TOTAL AMOUNT OF MANUFACTURING COST INCURRED:

VARIABLE MOH = 17500

FIXED MOH = 30000

TOTAL MOH = 47500

PER UNIT = 47500 / 12500

= 3.80PER UNIT