Question

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 $5.30 $2.80 $1.40 $4.00 $2.30 $2.20 $1.20 $0.45 4. 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.) Variable cost per unit cold

Answer 1

Direct materials	$    5.30
Direct labor	$    2.80
Variable manufacturing overhead	$    1.40
Sales commission	$    1.20
Variable administrative expense	$    0.45
Total variable cost per unit	$ 11.15

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