Required information [The following information applies to the questions displayed below.] 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: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost Per Unit $6.20 Average fixed manufacturing cost per unit $ 3.70 $ 1.60 $ 4.00 $ 3.20 $ 2.20 $ 1.20 $ 0.45 7. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced? Note: Round your answer to 2 decimal places.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
[The following information applies to the questions displayed below.]
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:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Average
Cost Per
Unit
$ 6.20
$ 3.70
$ 1.60
$ 4.00
Average fixed manufacturing cost per unit
$ 3.20
$ 2.20
$ 1.20
$ 0.45
7. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?
Note: Round your answer to 2 decimal places.
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] 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: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost Per Unit $ 6.20 $ 3.70 $ 1.60 $ 4.00 Average fixed manufacturing cost per unit $ 3.20 $ 2.20 $ 1.20 $ 0.45 7. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced? Note: Round your answer to 2 decimal places.
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