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 Average Cost per Unit $ 5.40 $ 2.90 $ 1.60 $ 4.00 Total manufacturing overhead cost Manufacturing overhead per unit $ 2.40 $ 2.10 $ 1.10 $ 0.55 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) (Hint: We did a problem just like this in the class lectures.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Average Cost
per Unit
$ 5.40
$ 2.90
$ 1.60
$ 4.00
$ 2.40
$ 2.10
Total manufacturing overhead cost
Manufacturing overhead per unit
$ 1.10
$ 0.55
11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?
What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) (Hint: We did a
problem just like this in the class lectures.)
Transcribed Image Text: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 Average Cost per Unit $ 5.40 $ 2.90 $ 1.60 $ 4.00 $ 2.40 $ 2.10 Total manufacturing overhead cost Manufacturing overhead per unit $ 1.10 $ 0.55 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) (Hint: We did a problem just like this in the class lectures.)
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