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![The Foundational 15 [LO1-1, LO1-2, LO1-3, LO1-4, LO1-5, LO1-6 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 6 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 0.26 points Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Fixed selling expense Pixed administrative expense Sales commissions Variable administrative expense eBook Foundational 1-6 6. If 12,500 units are produced and sold,Mhat is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.)](https://media.cheggcdn.com/media%2Fd47%2Fd4745c86-c698-4826-bcf1-1fb75141c73e%2Fimage)
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 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.) Total variable cost
Expert Answer
Solution;-
| Variable Cost if 12500 Units Produced | ||
| Cost | Per unit | Cost for 12500 |
| Direct Material | $5.60 | 70000 |
| Direct Labour | $3.10 | 38750 |
| Variable Manufacturing Overhead | $1.40 | 17500 |
| Variable Administrative Expenses | $0.45 | 5625 |
| Sales Commission | $1.20 | 15000 |
| Total Variable Cost | 146875 | |
Note:- Sales Commission has bee assumed to be as Variable Cost.
