Chapter 1, Problem 2F15

L01−2, L01−3, L01−4, L01−5, L01−6

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:

	Average Cost per unit
Direct materials	$6.00
Direct labor	S3.50
Variable manufacturing overhead	$1.50
Fixed manufacturing overhead	$4.00
Fixed selling expense	$3.00
Fixed administrative expense	$2.00
Sales commissions	$1.00
Variable administrative expense	$0.50

Required:

2. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units?