Question

Required information The Foundational 15 (LO1-1, LO1-2, LO1-3, LO1-4, LO1-5, LO1-6) 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 Comissions Variable asinistrative expense 55.00 $3.50 51.se $4.00 53.ee 52.ee 51.ee se.se Foundational 1-14 14. If 11.000 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 manufacturing cost Total indre manufacturing cost

Answer 1

Direct cost Particulars Direct materials Direct labor Total direct cost Per unit at 11000 units $ 6.00 $ 66,000 $ 3.50 $ 38,500 S 104,500 Indirect cost Particulars Variable manufacturing cost Fixed manufacturing cost Total indirect cost Per unit at 11000 units $ 1.50 $ 16,500 $ 40,000 (10,000 units * $ 4) S 56,500 Variable cost per unit Variable cost Per unit Direct materials $ 6.00 Direct labor $ 3.50 Variable manufacturing cost $ 1.50 Variable administration expense $ 0.50 Sales commission $ 1.00 Variable cost per unit $12.50 Incremental cost per unit is variable cost per unit i.e S 12.5