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 Fixed administrative expense Sales commissions Variable administrative expense Foundational 1-6 (Algo) Average Cost Per Unit $ 5.70 $3.20 $ 1.60 $ 4.00 $ 2.70 $ 2.10 $ 1.10 $ 0.55 6. If 12,500 units are produced and sold, what is the total variable cost of the units produced and sold? Note: Do not round intermediate calculations. Total variable cost

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Fixed administrative expense
Sales commissions
Variable administrative expense
Foundational 1-6 (Algo)
Average
Cost Per
Unit
$ 5.70
$3.20
$ 1.60
$ 4.00
$ 2.70
$ 2.10
$ 1.10
$ 0.55
6. If 12,500 units are produced and sold, what is the total variable cost of the units produced and sold?
Note: Do not round intermediate calculations.
Total variable 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 materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Foundational 1-6 (Algo) Average Cost Per Unit $ 5.70 $3.20 $ 1.60 $ 4.00 $ 2.70 $ 2.10 $ 1.10 $ 0.55 6. If 12,500 units are produced and sold, what is the total variable cost of the units produced and sold? Note: Do not round intermediate calculations. Total variable cost
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