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 Pived administrative expense Sales commissions Variable administrative expense Average Cost per Unit $5.20 $ 2.70 $1.50 $4.00 $2.20 $ 2.00 $1.00 $0.50 Foundational 1-14 (Algo) 14, If 11,000 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.) Total direct manufacturing cost Total indirect manufacturing cost

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answ
to 2 decimal places.)
Incremental cost per unit produced
Transcribed Image Text:15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answ to 2 decimal places.) Incremental cost per unit produced
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 materiale
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Pixed administrative expense
Sales commissions
Variable administrative expense
Average Cost
per Unit
$5.20
$2.70
$1.50
$4.00
$2.20
$ 2.00
$1.00
$ 0.50
Foundational 1-14 (Algo)
14, If 11,000 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.)
Total direct manufacturing cost
Total indirect manufacturing cost
Transcribed Image Text: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 materiale Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Pixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $5.20 $2.70 $1.50 $4.00 $2.20 $ 2.00 $1.00 $ 0.50 Foundational 1-14 (Algo) 14, If 11,000 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.) Total direct manufacturing cost Total indirect manufacturing cost
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