Question & Answer: Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its averag…..

The Foundational 15 [LO1-1, LO1-2, LO1-3, LO1-4, LO1-5, L01-6] The following information applies to the questions displayed below) Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, Part 5 of 15 its average costs per unit are as follows: Average Cost Per Unit $5.60 $3.10 $1.40 $4.00 $2.60 $2.20 $1.20 $0.45 .26 oints Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense eBook Foundational 1-5 5. If 8,000 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.) variable cost

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: If 8,000 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.) Total variable cost

Expert Answer

 

Per unit for 8000 units
Direct material $    5.60 $           44,800
Direct labour $    3.10 $           24,800
Variable manufacturing overhead $    1.40 $           11,200
Sales commission $    1.20 $             9,600
Variable administrative expenses $    0.45 $             3,600
Total variable cost $ 11.75 $           94,000
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