Read the case and follow instructions to complete the assignment.

Windward manufactures one product. The table below displays the weekly production costs. The managerial accounting team has noticed that output costs varied considerably from week to week.

Week	Output Units	Direct Materials	Direct Labor	Indirect Labor	Indirect Materials	Electricity	Factory Insurance	Other Overhead
1	800	$600	$1,000	$360	$600	$230	$250	$620
2	1000	750	1250	400	600	250	250	720
3	1200	900	1500	440	600	270	250	820

The unit selling price of the product is $8.00 and the sales force earns a 10% commission for each unit sold. Other administrative and selling expenses are fixed at $1,562 per week.

Windward does not carry inventory and, therefore, the number of units produced is equal to the number of units sold. Income information for three weeks is as follows:

Week 1 Week 2 Week 3 Sales S 6,400 $ 8,000 $ 9,600 Cost of Goods Sold S 3,660 S 4220 S 4,780 Gross Margin S 2,740 S 3,780 S 4,820 Other Expenses S 2,202 '5 2,362 S 2,522 Net Income S 538 S 1,418 5 2,298 Direct irect | Indirect | Indirect Factory Other Materials | Labol Labor |Materials Insurance | Overhead Windward Unit Total Cost of Variable Fixed 1000 Units Manufacturing Cost Cost Cost Total Per Unit Direct materials Direct labor Instructions: Indirect labor The purpose of this exercise is to help you to understand how costs behave relative to activity volume and Indirect material how to differentiate between total and per-unit fixed, variable, and mixed costs. Electricity Complete all the highlighted cells in this worksheet. Use Excel formulas for all computations. Factory Insurance Other overhead 1) Determine whether each of the manufacturing costs listed above are fixed, vaniable, or mixed. Total Manufacturing Costs Enter F, V, or M into the appropriate boxes above. Hint; if the total cost of an item is the same for all levels of output, the cost is fixed, Administrative and Selling if the unit cost of an item is the same for all levels of output, the cost is variable; Admin/Selling Expenses otherwise, the cost is mixed. Total Costs 2) Complete columns L and M in the table to the right. For items categorized as variable ('V'): Enter the Excel formula to compute unit variable cost (in column L) For items categorized as fixed ( 'F'): enter the total fixed cost (in column M). For items categorized as mixed ('M'): See #3, below, for instructions 3) Use the High-Low method to separate mixed costs into their fixed and variable components. Use Excel formulas to compute the fixed and variable costs. You may use the High-Low Worksheet to show the computations or enter the formulas directly into the appropriate cells in the table. Note: If you use the High-Low Worksheet, enter cell references in the table to the nght to 'feed' your answers answers from the worksheet. 4) Use Excel formulas to compute Total cost of 1000 units for each cost item (in column O). Use the information from columns L and M for your computations. DO NOT feed totals from the original given data table. | need to see that you know how to compute the amounts. 5) Compute the Per-Unit cost for each cost item (in column P). CostTemplate Units of Direct Direct Indirect Indirect Factory Other Week Output Materials Labor Labor Materials Electricity Insurance Overhead 800 $600 $1,000 $360 $600 $230 $250 $620 1000 750 1250 400 600 250 250 720 1200 900 1500 440 600 270 250 820