period cost calculation answers and explanation
Period Cost Calculation Step by step Solution with Explanation
Your question:
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
Period Cost Calculation Answers and Explanation
From the information provided, the following are categorized as period costs:
Fixed Selling Expense: $2.90 per unit
Calculation:
Fixed Selling Expense:
1.20 per unit×10,000 units=$12,0001.20
Variable Administrative Expense:
Thus, the total period costs incurred when selling 10,000 units are $67,500.