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 Average Cost Per Total manufacturing overhead cost Manufacturing overhead per unit Unit $6.20 $ 3.70 $ 1.60 $ 4.00 $3.20 $2.20 $ 1.20 $ 0.45 1. If 8,000 units are produced, what is the total manufacturing overhead cost incurred to support this level of production? What is his total amount expressed on a per-unit basis? Note: Round your "per unit" answer to 2 decimal places.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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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
Average
Cost Per
Unit
$ 6.20
$ 3.70
$ 1.60
$ 4.00
$ 3.20
$2.20
$ 1.20
$ 0.45
11. If 8,000 units are produced, what is the total manufacturing overhead cost incurred to support this level of production? What is
this total amount expressed on a per-unit basis?
Note: Round your "per unit" answer to 2 decimal places.
Total manufacturing overhead cost
Manufacturing overhead per unit
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 Average Cost Per Unit $ 6.20 $ 3.70 $ 1.60 $ 4.00 $ 3.20 $2.20 $ 1.20 $ 0.45 11. If 8,000 units are produced, what is the total manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per-unit basis? Note: Round your "per unit" answer to 2 decimal places. Total manufacturing overhead cost Manufacturing overhead per unit
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