The following information apples to the questions displayed

The following information apples to the questions displayed below) Martnez Company\'s relevent range of production Is 10,100 unts to 15100 unts When It produces and sells 12,600 units, its unit costs are as follows Direct materals Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Varlable administrative expense Amou Per Unit $5.90 3.40 1.60 $3.90 $2.90 $2.20 $ 1.20 $0.45

Solution

Part 5

Variable costs related per unit sold = direct material + Direct labor + Variable manufacturing overhead + sales commission + Variable administrative expense = 5.90+3.40+1.60+1.20+0.45 = 12.55

Total variable costs related to 10600 units sold = 10600*12.55 = 133030

Part 6

Total variable costs related to 5100 units sold = 5100*12.55 = 64005

Part 7

Total fixed manufacturing cost of production = 12600*3.90 = 49140

Average fixed manufacturing cost per unit (in case of 10600 units produced) = 49140/10600 = 4.64

Part 8

Average fixed manufacturing cost per unit (in case of 5100 units produced) = 49140/5100 =9.64