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Accounting Question Number 1
Subject
Business Finance
Question Description
Martinez Company’s relevant range of production is 8,500 units to 13,500 units. When it produces and sells 11,000 units, its unit costs are as follows:
Amount
Per Unit
Direct materials $ 5.10
Direct labor $ 2.60
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 3.10
Fixed selling expense $ 2.10
Fixed administrative expense $ 2.10
Sales commissions $ 1.10
Variable administrative expense $ 0.55
For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units?
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