Data Provided, as per Page 48 (Martines Company)
Ave. Cost/unit Ave(10K units) 8000
Direct Materials ₱6.00 10,000 ₱60,000.00 ₱48,000.00
Direct Labor ₱3.50 10,000 ₱35,000.00 ₱28,000.00
Variable Manufacturing Overhead ₱1.50 10,000 ₱15,000.00 ₱12,000.00
Fixed Manufacturing Overhead ₱4.00 10,000 ₱40,000.00 ₱5.00
Fixed Selling Expense ₱3.00 10,000 ₱30,000.00 ₱3.75
Fixed Administrative Expense ₱2.00 10,000 ₱20,000.00 ₱2.50
Sales Commissions ₱1.00 10,000 ₱10,000.00 ₱8,000.00
Variable Administrative Expense ₱0.50 10,000 ₱5,000.00 ₱4,000.00
Required:
1. Total Product Costs to make 10000 units
Product Costs =Direct Materials+ Direct Labor + Manufacturing Overhead
TPC = ₱60,000.00 ₱35,000.00 ₱15,000.00 ₱40,000.00 ₱150,000.00
2. Total Period Costs to make 10000 units
Period Costs= Selling expense + Administrative Expense
Period Costs= ₱30,000.00 ₱20,000.00 ₱10,000.00 ₱5,000.00 ₱65,000.00
3. If 8,000 units, variable cost per unit?
Variable Costs= ₱12,000.00 ₱8,000.00 ₱4,000.00 ₱76,000.00 ₱100,000.00
Variable Costs= ₱12.50 per unit
4. If 12,500 units, variable cost per unit?
Variable Costs= ₱18,750.00 ₱12,500.00 ₱6,250.00 ₱118,750.00 ₱156,250.00
Variable Costs= ₱12.50 per unit
5. if 8000 units are produced and sold, what is the total amount of variable costs
Variable Costs= ₱12,000.00 ₱8,000.00 ₱4,000.00 ₱76,000.00 ₱100,000.00
6. If 12,500 units are produced and sold, what is the total amount of variable costs
Variable Costs= ₱18,750.00 ₱12,500.00 ₱6,250.00 ₱37,500.00
7. if 8,000 unitis are produced, what is the average fixed manufacturing cost per unit produced
₱40,000.00 /8000 = ₱5.00
8. if 12,500 unit is are produced, what is the average fixed manufacturing cost per unit produced
₱40,000.00 /12000 = ₱3.20
9. if 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of produ
₱40,000.00
10.If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of prod
₱40,000.00
11. if 8,000 produced, total amount of manufacturing overhead cost incurred to support this level of production? What is t
₱12,000.00 ₱40,000.00 ₱52,000.00
per unit cost ₱6.50
12. if 12,500 produced, total amount of manufacturing overhead cost incurred to support this level of production? What is
₱18,750.00 ₱40,000.00 ₱58,750.00
per unit cost ₱4.70
13. if the selling price is $22 per unit, what is the contribution margin per unit?
Contribution Format Income Statement for Martinez
8,000 10,000
Sales ₱176,000.00 ₱220,000.00
Variable expenses
Costs of goods sold ₱128,000.00 ₱150,000.00
Variable selling ₱8,000.00 ₱10,000.00
Variable administrative ₱4,000.00 ₱140,000.00 ₱5,000.00 ₱165,000.00
Contribution margin ₱36,000.00 ₱55,000.00
Fixed expenses
Fixed selling ₱30,000.00 ₱30,000.00
Fixed administrative ₱20,000.00 ₱50,000.00 ₱20,000.00 ₱50,000.00
Net Operating Income -₱14,000.00 ₱5,000.00
20% 25%
14. if 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to suppor
Direct Costs are ₱66,000.00 ₱38,500.00
Indirect Costs are ₱16,500.00 ₱40,000.00
TOTAL DIRECT & INDIRECT COSTS
15. what incremental manufacturing costs will Martinez incur if it increases production from 10,000 to 10,001 units?
Direct Materials
Variable Manufacturing Overhead
12500 11000
₱75,000.00 ₱66,000.00
₱43,750.00 ₱38,500.00
₱18,750.00 ₱16,500.00
₱3.20 ₱3.64
₱2.40 ₱2.73
₱1.60 ₱1.82
₱12,500.00 ₱11,000.00
₱6,250.00 ₱5,500.00
red to support this level of production
urred to support this level of production?
this level of production? What is this total amount expressed on a per unit basis?
t this level of production? What is this total amount expressed on a per unit basis?
12,500
₱275,000.00
₱177,500.00
₱12,500.00
₱6,250.00 ₱196,250.00
₱78,750.00
₱30,000.00
₱20,000.00 ₱50,000.00
₱28,750.00
29%
acturing costs incurred to support this level of production?
₱104,500.00
₱56,500.00
₱161,000.00
om 10,000 to 10,001 units?
