1) A Company has collected the following data. The company wanted to use high-low method for measuring cost functions. Month Cost Hours January $10,000 700 February 24,400 2,000 March 31,280 2,450 April 36,400 3,000 May 43,000 4000 June 42,400 3,740 Determine the cost function: show your work Q2) A company is considering three possible locations (Amman, Irbid, and Aqaba) for its manufacturing facility. Produced units are to be sold for 350 JD/ unit. Based on the information listed below answer the following questions. Variable Marketing and Annual fixed cost manufacturing cost per distribution cost per unit Variable Location Amman Costs (JD) unit (JD) (JD) 15,000,000 85 35 Irbid 10,400,000 65 25 Aqaba 12,400,000 92 14 Given that the expected demand is 165,000 unit/ year, what is the expected operating income for each location. Show your work Q3) A manufacturing company produces two products: A and B. Projected sales of A and B are 120,000 units and 300,000 units respectively. The related data are presented below. Direct materials per unit Direct labor per unit A $25 B $15 $10 $5 A B Hours per 6000-unit batch: Setup hours Inspection hours 1.5 0.75 30 20 Total overhead costs and activity levels for the year are estimated as follows: Activity Setups Inspections Overhead costs Activity levels $600,000 $700,000 200 setup hours 2000 inspection hours Based on the ABC costing, calculate the cost per unit for product A. show your work Q4) A Company has the following balances as of the year ended in December 31, 2019. Direct Materials Inventory $50,000 Ending WIP Inventory 149,000 Finished Goods Inventory 139,000 Cost of Goods Sold 189,000 Cost of direct materials purchased during 2018 $102,000 Cost of direct materials requisitioned in 2018 134,000 Cost of goods completed during 2018 224,000 Factory overhead applied (135% of direct labor) 96,000 Determine the beginning WIP inventory. Show your work Q5) Give an example with numerical values on how broad averaging may lead to estimation problems when different products are produced