Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below.j 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 $5.80 $3.30 $1.50 $4.00 $2.80 $2.00 $1.00 $0.50 10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? Answer is complete but not entirely correct. d manufact 58,750

Explanation / Answer

Total Fixed Manufacturing cost for 12500 units Estimated number of units produced 10000 Fixed Manufacturing OH per unit 4 Total Fixed Manufacturing cost for 12500 units 40000 Total fixed Manufacturiing Cost: $ 40000

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