8. If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced? Total fixed manufacturing cost - see Q1 (a) Number of units produced (b) Average fixed manufacturing cost/unit produced (a)+(b) 1 For financial accounting purposes, what is the total amount of product costs incurred for 10,000 units? Direct materials Direct labor Variable manufacturing overhead Variable manufacturing cost per unit Variable manufacturing cost per unit (a) Number of units produced (b) Total variable manufacturing costs (a) x (b) Average fixed mfg. OH per unit (c) Number of units produced (d) Total manufacturing cost (c) x (d) Total product (manufacturing) cost Note: The average fixed manufacturing overhead cost per unit of $4 is valid for only one level of activity-10,000 units produced. 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 $3.50 Variable manufacturing overhead $1.50 Fixed manufacturing overhead $4.00 Fixed selling expense $3.00 Fixed administrative exponso $2.00 Sales commissions $1.00 Variable administrative expense $0.50