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Saved Help Save The Foundational 15 (LO1-1, LO1-2, LO1-3, LO1-4, LO1-5, LO1-6) [The following information applies to the ques

Foundational 1-11 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to suppor

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Answer #1

Total Manufacturing Overhead Cots

$52,000

Manufacturing Overhead per unit

$6.50

Explanation:

Variable Manufacturing Overheads

$12,000

(8000units * $1.50)

Fixed Manufacturing Overheads

$40,000

(10000units * $4.00)

Total Manufacturing Overhead Cots

$52,000

Manufacturing Overhead per unit

$6.50

($52,000 / 8000units)

NOTE:

Since production level is 8000units which occurs in Martinez Company's range of production (7500 units - 12500 units), therefore average cost per unit given in the question will be applicable.

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