Martinez company's relevant range of production

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

$

5.70

Direct labor

$

3.20

Variable manufacturing overhead

$

1.60

Fixed manufacturing overhead

$

3.70

Fixed selling expense

$

2.70

Fixed administrative expense

$

2.10

Sales commissions

$

1.10

Variable administrative expense

$

0.55

1.

Required:

1.

For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units?

TOTAL PRODUCTION COST = _________?

2.

2.

For financial accounting purposes, what is the total amount of period costs incurred to sell 11,000 units?

TOTAL PERIOD COST = _________?

3.

3.

If 9,000 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)

VARIABLE COST PER UNIT SOLD = _________?

4.

4.

If 13,000 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)

VARIABLE COST PER UNIT SOLD = _________?

5.

5.

If 9,000 units are sold, what is the total amount of variable costs related to the units sold?

TOTAL VARIABLE COST = _________?

6.

6.

If 13,000 units are sold, what is the total amount of variable costs related to the units sold?

TOTAL PRODUCTION COST = _________?

7.

7.

If 9,000 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)

AVERAGE FIXED MANUFACTURING COST PER UNIT = _________?

8.

8.

If 13,000 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)

AVERAGE FIXED MANUFACTURING COST PER UNIT = _________?

9.

9.

If 9,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

TOTAL FIXED MANUFACTURING COST = _________?

10.

10.

If 13,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

TOTAL FIXED MANUFACTURING COST = _________?

11.

11-a.

If 9,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?

TOTAL MANUFACTURING OVERHEAD COST = _________?

11-b.

If 9,000 units are produced, What is this total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)

MANUFACTURING OVERHEAD PER UNIT = _________?

12.

12-a.

If 13,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?

TOTAL MANUFACTURING OVERHEAD COST = _________?

12-b.

If 13,000 units are produced, what is this total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)

MANUFACTURING OVERHEAD PER UNIT = _________?

13.

13.

If the selling price is $21.70 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)

CONTRIBUTION MARGIN PER UNIT = _________?

14.

Required:

14-a.

If 12,000 units are produced, what are the total amounts of direct manufacturing costs incurred to support this level of production?

TOTAL DIRECT MANUFACTURING COST = _________?

14-b.

If 12,000 units are produced, what are the total amounts of indirect manufacturing costs incurred to support this level of production?

TOTAL INDIRECT MANUFACTURING COST = _________?

15.

15.

What total incremental cost will Martinez incur if it increases production from 11,000 to 11,001 units? (Round your answer to 2 decimal places.)

INCREMENTAL COST PER UNIT PRODUCED = _________?