Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below.] 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 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost Per Unit $6.90 $4.40 $1.50 $4.00 $3.90 $2.00 $1.00 $0.50 14. If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (Do not round intermediate calculations.) Total direct manufacturing cost Total indirect manufacturing cost

Explanation / Answer

14) Direct manufacturing cost = (6.9+4.4)*11000 = 124300

Indirect manufacturing cost = (1.5*11000+4*10000) = 56500

15) Incremental cost per unit produced = (6.9+4.4+1.5) = 12.8 per unit

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