# 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 average c…..

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 10,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (Do not round intermediate calculations.) Total direct manufacturing cost Total indirect manufacturing cost

 Direct Material Per Unit \$ 5.6 Direct Labor Per Unit \$ 3.1 Total Direct Manufacturing Cost Per Unit \$ 8.7

Total Units = 10,000 Units

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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 average c…..
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Total Direct Manufacturing Cost = Total Direct Manufacturing Cost Per Unit * Total Units

= \$ 8.70 *10,000 Units

\$ 87,000.00

 Variable Manufacturing Overhead Per Unit \$ 1.40 Add: Fixed Manufacturing Overhead Per Unit \$ 4.00 Total Indirect Manufacturing Cost Per Unit \$ 5.40 Total Units 10,000.00 Total Indirect Manufacturing Cost(Total Indirect Manufacturing Cost Per Unit * Units) \$ 54,000.00