Answer : $40,000/-
Explanation : As mentioned in the given question, Martinez Company's relevant range of production is 7,500 units to 12,500 units.
Actual production is 10,000 units.
It is given that average fixed manufacturing overhead is $4.00 at the production capacity of 10,000 units which is in the relevant range (7,500-12,500 units) of production mentioned above.
Fixed manufacturing Overhead/Cost = Units produced * Average fixed manufacturing overhead per unit.
Therefore, the total fixed manufacturing overhead at the production of 10,000 units is 10,000 * 4.00 = $40,000.
The fixed cost remains constant with production volume. Since, the production capacity is 8,000 units which is well within the range (7,500-12,500 units) given above. Therefore, Total fixed manufacturing cost will remain the same which is $40,000.
Required information (The following information applies to the questions displayed below.) Martinez Company's relevant range of...
Required information (The following information applies to the questions displayed below.) 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 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Pixed selling expense Tixed administrative expense Sales commissions Variable administrative expense Unit $6.70 $ 4.20 $1.40 $4.00 $3.70 $2.10 $1.10 $0.55 7. If 8,000 units are produced, what is...
Required information The following information applies to the questions displayed below.) 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 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Unit $6.70 $4.20 $1.40 $4.00 $ 3.70 $2.10 $1.10 $0.55 10. If 12,500 units are produced, what is...
Required information The following information applies to the questions displayed below.) 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 Direct materials Direct labor. Variable manufacturing overhead Fixed manufacturing overhead Pixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Unit $6.70 $ 4.20 $1.40 $4.00 $ 3.70 $2.10 $1.10 $0.55 8. If 12,500 units are produced, what is...
Required information The following information applies to the questions displayed below.) 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 Direct labor. Variable manufacturing overhead Fixed manufacturing overhead Pixed selling expense Fixed administrative expense Sales comissions Variable administrative expense Average Cost per Unit $6.70 $4.20 $1.40 $4.00 $3.70 $2.10 $1.10 $0.55 15. What incremental manufacturing cost will Martinez incurrit increases...
Required information The following information applies to the questions displayed below.) 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 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $6.70 $ 4.20 $1.40 $4.00 $3.70 $2.10 $1.10 $0.55 3. If 8,000 units are produced and sold,...
Required information [The following information applies to the questions displayed below.) 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 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $6.70 $4.20 $1.40 $4.00 $3.70 $2.10 $1.10 $0.55 14. If 12,000 units are produced, what are the...
Required information (The following information applies to the questions displayed below.] 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 Direct labor $6.70 $4.20 $1.40 Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $4.00 $3.70 $2.10 $1.10 $0.55 Required: 1. For financial accounting purposes, what is the...
Required information (The following information applies to the questions displayed below.] 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 Direct labor $6.70 $4.20 Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales comminsions Variable administrative expense $1.40 $4.00 $3.70 $2.10 $1.10 $0.55 2. For financial accounting purposes, what is the total...
Required information [The following information applies to the questions displayed below.) 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 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Pixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Unit $6.70 $ 4.20 $1.40 $4.00 $3.70 $2.10 $1.10 $0.55 5. If 8,000 units are produced and sold,...
Required information (The following information applies to the questions displayed below.) 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 $6.70 Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Yixed selling expense Tixed administrative expense Sales comissions Variable administrative expense $4.20 $4.40 $0.00 $3.70 $2.10 $1.10 $0.55 12. 12,500 units are produced, what is the total...