Ron Williams Manufacturing began operations this year. The company can make up to 30,000 un. operations: Sales price Units produced and sold $79 per ufit 30,000 $21 per unit $24 per unit S135,000 Direct materials Direct labor Fixed manufacturing overhead costs Variable manufacturing overhead Fixed marketing and administrative costs S117,000 Variable marketing and administrative $12 per unit $5 per unit costs

Ron Williams Manufacturing began operations this year. The company can make up to 30,000 un. operations: Sales price Units produced and sold $79 per ufit 30,000 $21 per unit $24 per unit S135,000 Direct materials Direct labor Fixed manufacturing overhead costs Variable manufacturing overhead Fixed marketing and administrative costs S117,000 Variable marketing and administrative $12 per unit $5 per unit costs

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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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 Direct materials $ 5.50 Direct labor $ 3.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 2.50 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (Do not round intermediate calculations.)
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 Direct materials $ 5.50 Direct labor $ 3.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 2.50 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 5. If 8,000 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.)
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