Question: 2. Selected data about Piepit Company's manufacturing operations at two levels of activity are presented below: Number of Units Produced 10,000 15,000 Total Manufacturing

2. Selected data about Piepit Company's manufacturing operations at two levels of

2. Selected data about Piepit Company's manufacturing operations at two levels of activity are presented below: Number of Units Produced 10,000 15,000 Total Manufacturing Costs $157,000 $225,000 Direct Material Cost per Unit $4 $4 Direct Labour Cost per Unit $6 $6 Required: Using the high-low method, estimate the cost formula for manufacturing overhead. Assume that both direct material and direct labour are variable costs. I Using your results, estimate the total manufacturing cost at a level of 12,000 units. (8 marks)

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