Chapter 1 HW Part 2 Review Flashcards
(15 cards)
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.)
$155,000
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units?
$70,500
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 8,000 units are produced and sold, what is the variable cost per unit produced and sold?
$13.15
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 12,500 units are produced and sold, what is the variable cost per unit produced and sold?
$13.15
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 8,000 units are produced and sold, what is the total amount of variable costs related to the units produced and sold?
$105,200
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold?
$164,375
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?
$5.00
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced?
$3.20
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
$40,000
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
$40,000
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- 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?
Total Manufacturing Overhead Cost: $52,800
Manufacturing Overhead Per Unit $6.60
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 12,500 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?
Total Manufacturing Overhead Cost: $60,000
Manufacturing Overhead Per Unit: $4.80
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If the selling price is $22.20 per unit, what is the contribution margin per unit?
$9.05
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- If 10,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production?
Total Direct Manufacturing Cost: $99,000
Total Indirect Manufacturing Cost: $56,000
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 $ 6.20
Direct labor $ 3.70
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.20
Fixed administrative expense $ 2.20
Sales commissions $ 1.20
Variable administrative expense $ 0.45
- What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units?
$11.50
