Sarnia Ltd. is a manufacturing company that produces a single product. The company keeps meticulous records...

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Sarnia Ltd. is a manufacturing company that produces a single product. The company keeps meticulous records of manufacturing activities from which the following information has been extracted: March-Low June-High Number of units produced Cost of goods manufactured Work in process inventory, beginning Work in process inventory, ending Direct materials cost per unit Direct labour cost per unit Manufacturing overhead cost, total 6,110 $186,480 $ 18,900 $ 31,500 $4 $ 9,165 $295,500 $ 67, 200 $ 44,100 6 6 10 10 ? The company's manufacturing overhead cost consists of both variable and fixed cost elements. To have data available for planning, management wants to determine how much of the overhead cost varles with the number of units produced versus how much is fixed per month. Required: 1. For both March and June, estimate the amount of manufacturing overhead cost added to production. Manufacturing overhead cost for March Manufacturing overhead cost for June 2. Using the high-low method, estimate a cost formula for manufacturing overhead. Y= 3. If 7,110 units are produced during a month, what would be the cost of goods manufactured? Assume that work in process inventories do not change. Cost of goods manufactured Sarnia Ltd. is a manufacturing company that produces a single product. The company keeps meticulous records of manufacturing activities from which the following information has been extracted: March-Low June-High Number of units produced Cost of goods manufactured Work in process inventory, beginning Work in process inventory, ending Direct materials cost per unit Direct labour cost per unit Manufacturing overhead cost, total 6,110 $186,480 $ 18,900 $ 31,500 $4 $ 9,165 $295,500 $ 67, 200 $ 44,100 6 6 10 10 ? The company's manufacturing overhead cost consists of both variable and fixed cost elements. To have data available for planning, management wants to determine how much of the overhead cost varles with the number of units produced versus how much is fixed per month. Required: 1. For both March and June, estimate the amount of manufacturing overhead cost added to production. Manufacturing overhead cost for March Manufacturing overhead cost for June 2. Using the high-low method, estimate a cost formula for manufacturing overhead. Y= 3. If 7,110 units are produced during a month, what would be the cost of goods manufactured? Assume that work in process inventories do not change. Cost of goods manufactured

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Answer 1 Particulars March Low June high Cost of goods manufactured 186480 295500 Less Direc... View the full answer