MANAGERIAL ACCOUNTING LL W/ CONNECT
17th Edition
ISBN: 9781266675409
Author: Garrison
Publisher: MCG
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Textbook Question
Chapter 1, Problem 15F15
L01-2, L01-3, L01-4, L01-5, L01-6
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:
| Average Cost per Unit |
|
| Direct materials | $6.00 |
| Direct labor | $3.50 |
| Variable manufacturing overhead | $1.50 |
| Fixed manufacturing overhead | $4.00 |
| Fixed selling expense | $3.00 |
| Fixed administrative expense | $2.00 |
| Sales commissions | $1.00 |
| Variable administrative expense | $0.50 |
Required:
15. What incremental
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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:
Average
Cost Per
Unit
$ 5.20
$ 2.70
$ 1.50
$ 4.00
$ 2.20
$ 2.00
$ 1.00
$ 0.50
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
6. If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not
round intermediate calculations.)
* Answer is complete but not entirely correct.
Total variable cost
$ 87,200
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:
Average
Cost
Direct materials
Direct labor
Variable manufacturing overhead
Fixed nanufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
per
Unit
$6.00
$3.50
$1.50
$4.00
$3.00
$2.e0
$1.00
$0.50
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?
Tolal product cost
13
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
$6.00
$ 3.50
1.50
$4.08
$ 3.98
$ 2.00
$1.00
$
$ 8.50
9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
Total fixed manufacturing cost
Chapter 1 Solutions
MANAGERIAL ACCOUNTING LL W/ CONNECT
Ch. 1 - Prob. 1QCh. 1 - Define the following: (a) direct materials, (b)...Ch. 1 - Explain the difference between a product cost and...Ch. 1 - Distinguish between (a) a variable cost, (b) a...Ch. 1 - Prob. 5QCh. 1 - Define the following terms: (a) cost behavior and...Ch. 1 - What is meant by an activity base when dealing...Ch. 1 - Prob. 8QCh. 1 - Distinguish between discretionary fixed costs and...Ch. 1 - Does the concept of the relevant range apply to...
Ch. 1 - What is the difference between a traditional...Ch. 1 - Prob. 12QCh. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - Prob. 1AECh. 1 - Prob. 2AECh. 1 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L012, L013, L014, L015, L016 Martinez Company’s...Ch. 1 - L01–1, L01–2, L01–3, L01–4, L01–5, L01–6
Martinez...Ch. 1 - L01–1, L01–2, L01–3, L01–4, L01–5, L01–6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - EXERCISE 1—1 Identifying Direct and Indirect Costs...Ch. 1 - EXERCISE 1-2 Classifying Manufacturing Costs LO1-2...Ch. 1 - EXERCISE 1-3 Classifying Costs as Product or...Ch. 1 - EXERCISE 14 Fixed and Variable Cost Behavior LO14...Ch. 1 - Prob. 5ECh. 1 - EXERCISE 1—6 Traditional and Contribution Format...Ch. 1 - Prob. 7ECh. 1 - EXERCISE 18 Product Costs and Period Costs;...Ch. 1 - Prob. 9ECh. 1 - Prob. 10ECh. 1 - EXERCISE 1—11 Cost Behavior; Contribution Format...Ch. 1 - EXERCISE 1-12 Product and Period Cost Flows LO1–3...Ch. 1 - Prob. 13ECh. 1 - EXERCISE 1-14 Cost Classification 1O1–2, LO1–3,...Ch. 1 - Prob. 15ECh. 1 - EXERCISE 1–16 Cost Classifications for Decision...Ch. 1 - EXERCISE 1-17 Classifying Variable and Fixed Costs...Ch. 1 - PROBLEM 1-18 Direct and Indirect Costs; variable...Ch. 1 - PROBLEM 1-19 Traditional and Contribution Format...Ch. 1 - PROBLEM 120 Variable and Fixed Costs; Subtleties...Ch. 1 - Prob. 21PCh. 1 - Prob. 22PCh. 1 - PROBLEM 123 Cost Classification LO11, LO13, LO14...Ch. 1 - PROBLEM 1-24 Different Cost Classifications for...Ch. 1 - Prob. 25PCh. 1 - CASE 1-26 Cost Classification and Cost Behavior...Ch. 1 - Prob. 27C
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