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Homework answers / question archive / Martinez Company's relevant range of production is 7,700 units to 12,700 units
Martinez Company's relevant range of production is 7,700 units to 12,700 units. When it produces and sells 10,200 units, its unit costs are as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Amount Per Unit $ 6.00 $ 3.70 $ 1.70 $ 4.00 $ 3.00 $ 2.00 $ 1.00 $ 0.70 Required: For financial accounting purposes, what is the total amount of product costs incurred to make 10,200 units? Total product cost $ 12
Martinez Company's relevant range of production is 7700 units to 12,700 units. When it produces and sells 10,200 units, its unit costs are as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Amount Per Unit $ 6.00 $ 3.70 $ 1.70 $4.00 $ 3.00 $ 2.00 $ 1.00 $ 0.70 Required: For financial accounting purposes, what is the total amount of product costs incurred to make 10,200 units? Answer is complete but not entirely correct. Total product cool $ 12
Computation of Total product cost
| Particulars | Amount ($) | Amount ($) |
| Direct materials | 6 | |
| Direct labour | 3.7 | |
| Variable manufacturing overhead | 1.7 | |
| Total variable manufacturing cost per unit | 11.4 | |
| Add: Fixed manufacturing overhead | 4 | |
| Product cost per unit | 15.4 | |
| Total product cost for producing 10200 units ($15.4 X 10200 units) |
$157080 |
