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 $ 6.30 $ 3.80 $ 1.50 $ 4.00 al fixed manufacturing cost $ 3.30 $ 2.00 $ 1.00 $ 0.50 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

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
$ 6.30
$ 3.80
Total fixed manufacturing cost
$ 1.50
$ 4.00
$ 3.30
$ 2.00
$ 1.00
$ 0.50
9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
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 $ 6.30 $ 3.80 Total fixed manufacturing cost $ 1.50 $ 4.00 $ 3.30 $ 2.00 $ 1.00 $ 0.50 9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
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