Please solve and explain: The following information applies to the questions dis

Question

Please solve and explain:

The following information applies to the questions displayed below.) 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 Direct materials Direct labor Varlable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commisslons Varlable administrative expense Amount Per Unit $ 5.10 $2.60 $1.60 $ 3.10 $ 210 2.10 $1.10 $0.55

Explanation / Answer

At 11000 PU Cost Total Cost Cost Type Direct Material 5.10 56100 Variable Direct Labor 2.60 28600 Variable Variable Manufacturing OH 1.60 17600 Variable Fixed Manufacturing OH 3.10 34100 Fixed Fixed Selling Exp 2.10 23100 Fixed Fixed Admin Exp 2.10 23100 Fixed Sales Commission 1.10 12100 Variable Variable Admin Exp 0.55 6050 Variable 18.25 2,00,750 10 Total Fixed MOH-13000 Units 34,100 (Fixed Cost Remains same irrelevant of Activity Level) 11A Total Manufacturing OH: 9000 Units Variable Manufacturing OH 14400 (9000*1.60) Fixed Manufacturing OH 34,100 (Fixed Cost Remains same irrelevant of Activity Level) Total Manufacturing OH 48,500 11B Total Manufacturing OH: 9000 Units Variable Manufacturing OH 14400 (9000*1.60) Fixed Manufacturing OH 34100 Total Manufacturing OH 48,500 Total Units 9,000 Manufacturing OH PU 5.39

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