1. Sam manufacturing Co. Ltd estimates their manufacturing overheads based on direct material quantity. The company presented the following data for the past 6 months:

Direct material quantity (kg)	Actual Overhead costs ()
80,000	860,000
85,000	905,000
96,000	1,020,000
100,000	1,050,000
75,000	815,000
60,000	650,000

Requirements:

1. Using the necessary data above, determine the variable and fixed overhead costs using any management accounting technique. You should also discuss the strengths and limitations of your chosen technique (in reference to the data presented above and the outcome of the computation). (10 marks)