Accounting Question Number 1
Martinez Company’s relevant range of production is 8,500 units to 13,500 units. When it produces and sells 11,000 units, its unit costs are as follows:
Amount Per Unit |
||
;Direct materials | $ | 5.10 |
;Direct labor | $ | 2.60 |
;Variable manufacturing overhead | $ | 1.60 |
;Fixed manufacturing overhead | $ | 3.10 |
;Fixed selling expense | $ | 2.10 |
;Fixed administrative expense | $ | 2.10 |
;Sales commissions | $ | 1.10 |
;Variable administrative expense | $ | 0.55 |
For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units?
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