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 $ 5.20 $ 2.70 $ 1.50 $ 4.00 $ 2.20 $ 2.00 $ 1.00 $ 0.50 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.)

FINANCIAL ACCOUNTING
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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:
Average
Cost Per
Unit
$ 5.20
$ 2.70
$ 1.50
$ 4.00
$ 2.20
$ 2.00
$ 1.00
$ 0.50
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
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.)
* Answer is complete but not entirely correct.
Total variable cost
$ 87,200
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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: Average Cost Per Unit $ 5.20 $ 2.70 $ 1.50 $ 4.00 $ 2.20 $ 2.00 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 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.) * Answer is complete but not entirely correct. Total variable cost $ 87,200 < Prev 6. 8. 15 of 15 Next >
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