2: Martinez Company’s relevant range of production is 15,000 units to

Transcribed Image Text: Q. No. 2: Martinez Company’s relevant range of production is 15,000 units to
25,000 units. When it produces and sells 17,500 units, its average costs per unit are
as follows:
Average Cost per
Unit ($)
Selling Price
Direct materials
Direct labor.
Variable manufacturing overhead
Fixed manufacturing overhead.
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
50
10
6.
5.
3
2
2.5
Required:
a. For financial accounting purposes, what is the total amount of product costs
incurred to make 17,500 units?
b. If 18,500 units are produced and sold, calculate the variable cost per unit and
total for units produced and sold?
c. If 19,000 units are produced, what is the average fixed manufacturing cost
per unit produced?
d. if 19,500 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?

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