Question
Martinez Company's relevant range of production is 8,300 units to 13,300 units. When it produces and sells 10,800 units, its unit costs are as follows:
Martinez Company's relevant range of production is 8,300 units to 13,300 units. When it produces and sells 10,800 units, its unit costs are as follows:
Amount
Per Unit Direct materials $ 5.80 Direct labor $ 3.30 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 3.80 Fixed selling expense $ 2.80 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50
If 8,800 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
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