Martinez company's relevant range of production is 8,900 units to 13,900 units when it produces and sells 11,400 units its unit cost are as follows: Direct material Direct labor 6.70 4.20 Variable manufacturing overhead 1.40 Fixed manufacturing overhead 4.70 Fixed administrative expenses 3.70 Sales commission 2.10 Variable administrative expense 0.55 What is the total amount of product costs incurred to make 11,400 units? QUESTION: Southern Mfg., Inc., is currently operating at only 94 percent of fixed asset capacity. Current sales are $740,000. Fixed assets are $450,000 and sales are projected to grow to $860,000. How much in new fixed assets are required to support this growth in sales? Assume the company maintains its current operating capacity.

Martinez company's relevant range of production is 8,900 units to 13,900 units when it produces and sells 11,400 units its unit cost are as follows: Direct material Direct labor 6.70 4.20 Variable manufacturing overhead 1.40 Fixed manufacturing overhead 4.70 Fixed administrative expenses 3.70 Sales commission 2.10 Variable administrative expense 0.55 What is the total amount of product costs incurred to make 11,400 units? QUESTION: Southern Mfg., Inc., is currently operating at only 94 percent of fixed asset capacity. Current sales are $740,000. Fixed assets are $450,000 and sales are projected to grow to $860,000. How much in new fixed assets are required to support this growth in sales? Assume the company maintains its current operating capacity.

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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