Question

1.

16 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 Part 14 of 15 per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $6.00 $3.50 $1.50 $4.00 $3.00 10 points $2.00 $1.00 $0.50 eBook Print Reterences 14. If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to sSupport this level of production? (Do not round intermediate calculations.) Total direct manufacturing cost Total indirect manufacturing cost Mc < Prev 16 17 of 24 Next >

2. what incremental cost will martinez incur if it increases production from 10,000 to 10,001 units?

Answer 1

Answer 14.

a.	Direct materials per unit	6.00
	Direct labor per unit	3.50
	Total Direct manufacturing cost per unit	9.50
	Number of units sold	11,000
	Total direct manufacturing cost	104500
b.	Variable manufacturing overhead per unit	1.50
	Fixed manufacturing overhead per unit	4.00
	Indirect manufacturing cost per unit	5.50
	Number of units sold	11000
	Total indirect manufacturing cost	60500

Incremental manufacturing cost per unit produced = Direct material cost per unit + Direct labor cost per unit + Variable manufacturing overhead per unit.

= 6 + 3.50 + 1.50

= $ 11

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