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: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales comissions Variable administrative expense Average Cost per Unit $6. $3.50 $1.52 $4.00 $1, $2.00 $1.00 $8.50 Foundational 1-5 5. If 8.000 units are produced and sold what is the total amount of variable costs related to the units produced and sold? (Do not round Intermediate calculations.) Total variable costs

Answer 1

Q.4	Variable cost per unit sold	12.5
	Working Note :
	Caluclation of VC per unit sold
	Direct Material	6
	Direct Labor	3.5
	Variable manufactuirng OH	1.5
	Sales Commission	1
	Variable admin expense	0.5
	Variable cost per unit sold	12.5
Q.5	Total Variable cost on 8000 Units	100,000
	Working Note :
	Calculation of VC on 8000 units
	Total VC = No. of units sold * VC per unit
	=8000*12.5
	100000