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antiseptic1488 [7]
3 years ago
11

Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its ave

rage costs per unit are as follows:
Average Cost per Unit
Direct materials $ 6.10
Direct labor $ 3.60
Variable manufacturing overhead $ 1.40
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.10
Fixed administrative expense $ 2.10
Sales commissions $ 1.10
Variable administrative expense $ 0.55
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (Do not round intermediate calculations.)
Mathematics
1 answer:
blagie [28]3 years ago
4 0

Answer:

$68,500

Step-by-step explanation:

The following costs are included in the period costs:

Fixed selling expense = $3.10

Fixed administrative expense = $2.10

Sales commissions = $1.10

Variable administrative expense = $0.55

Hence,

the total period costs incurred

= Sum of the above expenses × Total number of  units sold

= ( $3.10 + $2.10 + $1.10 + $0.55 ) × 10,000

= $68,500

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