What is the total amount of fixed manufacturing cost

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Reference no: EM132970275

Question: Martinez Company's relevant range of production is 8,000 units to 13,000 units. When it produces and sells 10,500 units, its unit costs are as follows:

Amount Per UnitDirect materials$7.00 Direct labour$4.00 Variable manufacturing overhead$2.00 Fixed manufacturing overhead$5.00 Fixed selling expense$4.00 Fixed administrative expense$3.00 Sales commissions$2.00 Variable administrative expense$0.40

Required:
For financial accounting purposes, what is the total amount of product costs incurred to make 10,500 units?

Martinez Company's relevant range of production is 7,600 units to 12,600 units. When it produces and sells 10,100 units, its unit costs are as follows:

Amount
Per UnitDirect materials$7.00 Direct labour$3.60 Variable manufacturing overhead$1.60 Fixed manufacturing overhead$5.00 Fixed selling expense$4.00 Fixed administrative expense$3.00 Sales commissions$2.00 Variable administrative expense$0.50

Required:
If 8,100 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

Reference no: EM132970275

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