What is the total amount of fixed manufacturing cost

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Problem - 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

$5.90

Direct labor

$3.40

Variable manufacturing overhead

$1.60

Fixed manufacturing overhead

$4.00

Fixed selling expense

$2.90

Fixed administrative expense

$2.20

Sales commissions

$1.20

Variable administrative expense

$0.45

Required - If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

Reference no: EM132833311

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