Martinez company's relevant range of production is 8,900 units to13,900 units when it produces and sells 11,400 units its unit cost are asfollows:Direct material6.704.20Variable manufacturing overhead 1.40Direct laborFixed manufacturing overhead4.70Fixed administrative expenses3.70Sales commission2.10Variable administrative expense0.55What is the total amount of product costs incurred to make 11,400units?

Total Product Costs:Total variable costs: $76,380 + $47,880 + $15,960 = $140,220Total fixed…

Answered: Martinez company's relevant range of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.50 $ 3.90 $ 1.30 $ 13.50 $ 2.25 $ 1.80 $ 0.50 $ 0.45 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense If 10,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to: Multiple Choice $128,250 $135,000 $121,500 $148,500
Uramilaben
Kubin Company's relevant range of production is 25,000 to 33,500 units. When it produces and sells 29,250 units, its average costs per unit are as follows: Average Cost per Unit $ 8.50 $ 5.50 $ 3.00 $ 6.50 $ 5.00 $ 4.00 $ 2.50 $ 2.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 29,250 to 29,251 units? 2. What is the incremental cost incurred if the company increases production and sales from 29,250 to 29,251 units? 3. Assume that Kubin Company produced 29,250 units and expects to sell 28,900 of them. If a new customer unexpectedly emerges and expresses interest in buying the 350 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell…
2. What is the company’s total contribution margin under variable costing? 3. What is the company’s net operating income under variable costing 4. What is the company’s total gross margin under absorption costing?
Required information [The following information applies to the questions displayed below.] 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 Total variable cost 6. If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.) W
Vinubhai
Kubin Company’s relevant range of production is 22,000 to 27,000 units. When it produces and sells 24,500 units, its average costs per unit are as follows: Amount per Unit Direct materials $ 8.20 Direct labor $ 5.20 Variable manufacturing overhead $ 2.70 Fixed manufacturing overhead $ 6.20 Fixed selling expense $ 4.70 Fixed administrative expense $ 3.70 Sales commissions $ 2.20 Variable administrative expense $ 1.70 Required: 1. If 22,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 27,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 22,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 27,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 22,000 units are produced, what is the average fixed manufacturing 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 materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost Per Unit $ 6.00 $ 3.50 $ 1.50 $ 4.00 $ 3.00 $ 2.00 $ 1.00 $ 0.50 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.)
Kubin Company's relevant range of production is 16,000 to 24,500 units. When it produces and sells 20,250 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 $ 7.70 $ 4.70 $ 2.20 $ 5.70 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 20,250 to 20,251 units? 2. What is the incremental cost incurred if the company increases production and sales from 20,250 to 20,251 units? 3. Assume that Kubin Company produced 20,250 units and expects to sell 19,980 of them. If a new customer unexpectedly emerges and expresses interest in buying the 270 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer?…
The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company’s three products: A, B, and C: Product A B C Selling price $ 90.00 $ 100.00 $ 110.00 Variable costs: Direct materials 44.40 15.00 64.30 Direct labour 18.00 30.00 12.00 Variable manufacturing overhead 6.00 10.00 4.00 Total variable cost 68.40 55.00 80.30 Contribution margin $ 21.60 $ 45.00 $ 29.70 Contribution margin ratio 24 % 45 % 27 % Due to a strike in the plant of one of its competitors, demand for the company’s products far exceeds its capacity to produce. Management is trying to determine which product(s) to concentrate on next week in filling its backlog of…
[The following information applies to the questions displayed below.] 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 12. If 12,500 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
Sierra Company produces its product at a total cost of $120 per unit. Of this amount, $40 per unit is selling and administrative costs. The total variable cost is $96 per unit, and the desired profit is $24.00 per unit. Determine the markup percentage using the (a) total cost, (b) product cost, and (c) variable cost methods. Round your answers to one decimal place. a. Total cost b. Product cost c. Variable cost % % %

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