Chapter 1 HW Part 2 Review Flashcards
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.)
$155,000
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units?
$70,500
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 8,000 units are produced and sold, what is the variable cost per unit produced and sold?
$13.15
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 12,500 units are produced and sold, what is the variable cost per unit produced and sold?
$13.15
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 8,000 units are produced and sold, what is the total amount of variable costs related to the units produced and sold?
$105,200
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold?
$164,375
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?
$5.00
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced?
$3.20
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
$40,000
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
$40,000
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- 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?
Total Manufacturing Overhead Cost: $52,800
Manufacturing Overhead Per Unit $6.60
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- 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?
Total Manufacturing Overhead Cost: $60,000
Manufacturing Overhead Per Unit: $4.80
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If the selling price is $22.20 per unit, what is the contribution margin per unit?
$9.05
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 10,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production?
Total Direct Manufacturing Cost: $99,000
Total Indirect Manufacturing Cost: $56,000
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units?
$11.50
