Martinez Company's relevant range of production is 7,700 units to 12,700 units. When it produces and sells 10,200 units, its unit costs are as follows: Amount Per Unit Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense $ 6.00 $ 3.70 $ 1.70 $4.00 $ 3.00 Fixed administrative expense Sales commissions $ 2.00 $ 1.00 Variable administrative expense $ 0.70 Required: For financial accounting purposes, what is the total amount of product costs incurred to make 10,200 units? Total product cost $ 12
Martinez Company's relevant range of production is 7,700 units to 12,700 units. When it produces and sells 10,200 units, its unit costs are as follows: Amount Per Unit Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense $ 6.00 $ 3.70 $ 1.70 $4.00 $ 3.00 Fixed administrative expense Sales commissions $ 2.00 $ 1.00 Variable administrative expense $ 0.70 Required: For financial accounting purposes, what is the total amount of product costs incurred to make 10,200 units? Total product cost $ 12
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Martinez Company's relevant range of production is 7,700 units to 12,700 units. When it produces and sells 10,200 units, its unit costs
are as follows:
Amount
Per Unit
Direct materials
Direct labour
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
$ 6.00
$ 3.70
$ 1.70
$4.00
$ 3.00
Fixed administrative expense
Sales commissions
$ 2.00
$ 1.00
Variable administrative expense
$ 0.70
Required:
For financial accounting purposes, what is the total amount of product costs incurred to make 10,200 units?
Total product cost
$
12
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