Required information

Skip to question

[The following information applies to the questions displayed below.]

Martinez Companys 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 UnitDirect materials$ 6.00Direct labor$ 3.50Variable manufacturing overhead$ 1.50Fixed manufacturing overhead$ 4.00Fixed selling expense$ 3.00Fixed administrative expense$ 2.00Sales commissions$ 1.00Variable administrative expense$ 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?