Question: The controller of Fortnight Co. has requested a quick estimate of the manufacturing supplies needed for the Cleveland Plant for the month of July, when

The controller of Fortnight Co. has requested a quick estimate of the manufacturing supplies needed for the Cleveland Plant for the month of July, when production is expected to be 580,000 units to meet the ending inventory requirements and sales of 585,000 units. Fortnight Co.'s budget analyst has the following actual data for the last three months.

Month Production in Units Manufacturing Supplies
March 505,000 $ 680,660
April 650,000 854,660
May 590,000 768,210

Using the high-low method to develop a cost estimating equation, the total estimated cost of needed manufacturing supplies for July would be: (CMA adapted)

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