Question

Martinez Company's relevant range of production is 8.500 units to 13,500 units. When It produces and sells 11.000 units, Its unit costs are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Vanable administrative expense Amount Per Unit $ 6.10 $3.60 $ 1.40 $ 4.10 $ 3.10 $ 2.10 $ 1.10 $0.55

Answer 1

8.total fixed manufaturing cost = (fixed manufacturing per unit at 11,000 units *11,000 units)

=>($4.10*11,000)=>$45,100.

average fixed manufacturing cost per unit at 13,500 units

=> total fixed manufacturing cost / number of units

=>$45,100 / 13,500

=>$3.34.

14-a.	$116,400
14-b.	$61,900

working;

14a.direct materials ($6.10*12,000 units)	$73,200
direct labor ($3.60*12,000)	43,200
Total direct manufacturing cost	$116,400
14b.variable manufacturing overhead cost ($1.40*12,000 units)	16,800
fixed manufacturing overhead	45,100
total indirect manufacturing cost	$61,900