Business, 28.08.2020 18:01, betsylancer8071

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 Unit
Direct materials $ 5.40
Direct labor $ 2.90
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 2.40
Fixed administrative expense $ 2.10
Sales commissions $ 1.10
Variable administrative expense $ 0.55
1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.)
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (Do not round intermediate calculations.)
3. If 8,000 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.)
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.)
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.)
6. If 12,500 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.)
7. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?
8. If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)
9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places and other answers to the nearest whole dollar amount.)
12. If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places and other answers to the nearest whole dollar amount.)
13. If the selling price is $21.40 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
14. If 12,000 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.)
15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answer to 2 decimal places.)

Answers: 1

Show answers

Answers

answered: jeanma0

The total amount for the product cost incurred will be $139000.

The period cost for 10000 units will be $61500. If 8,000 units are produced and sold, the variable cost per unit produced and sold will be $11.55. If 12,500 units are produced and sold, the variable cost per unit produced and sold will be $11.55.If 8,000 units are produced and sold, the total amount of variable costs that are related to the units produced and sold will be $92400.The total variable cost for 12500 units will be $144375. The average fixed manufacturing cost for 8000 units and 12500 units will be $4.00. The total fixed manufacturing cost for 8000 units and 12500 units will be $32000 and $50000 respectively.

The total amount of manufacturing overhead costs for 8000 units will be;

= 8000 × $5.60

= $44800

The total amount of manufacturing overhead for 12500 units will be:

= 12500 × $5.60

= $70000

The contribution margin per unit will be:

= Selling price - Variable manufacturing cost per unit.

= $21.40 - $9.90

= $11.50

The total amount of direct manufacturing cost will be:

= $9.90 × 12000 = $118800

The total amount of indirect manufacturing cost will be:

= $4.00 × 12000 = $48000

Lastly, the incremental manufacturing cost will be $9.90.

Learn more about fixed cost on:

link

answered: alexi25jeep

Martinez Company

1. Total amount of product costs for 10,000 units:

= 10,000 * $13.90

= $139,000

2. Period costs for 10,000 units:

= 10,000 * $6.15

= $61,500

3. Variable cost per unit of 8,000 produced and sold:

= $11.55

4. Variable cost per unit of 12,500 produced and sold:

= $11.55

5. Total variable costs for 8,000 units produced and sold:

= 8,000 * $11.55

= $92,400

6. Total variable costs for 12,500 units produced and sold:

= 12,500 * $11.55

= $144,375

7. Average fixed manufacturing cost per unit produced for 8,000 units:

= $4.00

8. Average fixed manufacturing cost per unit produced for 12,500 units:

= $4.00

9. Total fixed manufacturing cost for 8,000 units:

= 8,000 x $4.00

= $32,000

10. Total fixed manufacturing cost for 12,500 units:

= 12,500 x $4.00

= $50,000

11. Total amount of manufacturing overhead costs for 8,000 units:

= 8,000 * $5.60

= $44,800

per unit = $5.60

Variable manufacturing overhead = $1.60

Fixed manufacturing overhead = $4.00

Total per unit = $5.60

12. Total amount of manufacturing overhead for 12,500 units:

= 12,500 x $5.60

= $70,000

per unit = $5.60

Variable manufacturing overhead = $1.60

Fixed manufacturing overhead = $4.00

Total per unit = $5.60

13. Contribution margin per unit:

Selling price = $21.40

Variable manufacturing cost per unit = $9.90

Contribution margin per unit $11.50

14. Total amounts of direct and indirect manufacturing costs for 12,000 units:

Direct manufacturing costs = $9.90 x 12,000 = $118,800

Indirect manufacturing costs = $4.00 x 12,000 = $48,000

15. Incremental manufacturing cost if Martinez increases production from 10,000 to 10,001:

= $9.90

Explanation:

a) Data and Calculations:

Average Cost Per Unit

Direct materials $ 5.40

Direct labor $ 2.90

Variable manufacturing overhead $ 1.60

Total Variable Costs per unit $ 9.90

Fixed manufacturing overhead $ 4.00

Total product cost per unit $13.90

Period Costs:

Fixed selling expense $ 2.40

Fixed administrative expense $ 2.10

Sales commissions $ 1.10

Variable administrative expense $ 0.55

Total period costs per unit $6.15

All Variable costs:

Variable production costs $9.90

Sales Commission $1.10

Variable administrative expense $ 0.55

Total Variable costs $11.55

All Fixed Costs:

Fixed manufacturing overhead $ 4.00

Fixed selling expense $ 2.40

Fixed administrative expense $ 2.10

Total fixed costs per unit $8.50

answered: Guest

correct, but each time you dont pay the price of the penalty can increase.

answered: Guest

The answer would be

Other questions on the subject: Business

Business, 22.06.2019 15:30, Kiaraboyd9366

The school cafeteria can make pizza for approximately $0.30 a slice. the cost of kitchen use and cafeteria staff runs about $200 per day. the pizza den nearby will deliver whole pizzas for $9.00 each. the cafeteria staff cuts the pizza into eight slices and serves them in the usual cafeteria line. with no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day. should the school cafeteria make or buy its pizzas?

Answers: 3

continue

Business, 22.06.2019 20:20, jennybee12331

Precision aviation had a profit margin of 6.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8. what was the firm's roe? a. 15.23%b. 16.03%c. 16.88%d. 17.72%e. 18.60%

Answers: 2

continue

Business, 22.06.2019 20:50, JasJackson

Barbara flynn is in charge of maintaining hospital supplies at general hospital. during the past year, the mean lead time demand for bandage bx-5 was 65 (and was normally distributed). furthermore, the standard deviation for bx-5 was 6. ms. flynn would like to maintain a 90% service level. refer to the standard normal table for z-values. a) what safety stock level do you recommend for bx-5? safety stock=)what is the appropriate reorder point? reorder point=

Answers: 1

continue

Business, 22.06.2019 22:50, brookephillips1099

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?

Answers: 1

continue

Do you know the correct answer?

Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and...