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Martinez Company’s relevant range of production is 8,500 units to 13,500 units
Martinez Company’s relevant range of production is 8,500 units to 13,500 units. When it produces and sells 11,000 units, its unit costs are as follows:
| Amount Per Unit |
||
| Direct materials | $ | 5.10 |
| Direct labor | $ | 2.60 |
| Variable manufacturing overhead | $ | 1.60 |
| Fixed manufacturing overhead | $ | 3.10 |
| Fixed selling expense | $ | 2.10 |
| Fixed administrative expense | $ | 2.10 |
| Sales commissions | $ | 1.10 |
| Variable administrative expense | $ | 0.55 |
For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units?
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