3 Below is financial information for December Inc., which manufactures a single product: 4 5 5 7 3 #units produced October Low activity November High activity 7,000 11,000 Cost of goods manufactured $ 240,000 $ 345,000 1 Work in process inventory, opening ba $ 2 Work in process inventory, ending bale $ 5,000 $ 17,000 2,000 $ 22,000 3 Direct materials cost per unit Direct labour cost per unit SS $ 8 S 8 Manufacuring overhead cost, total 16 $ P 16 ? The company's manufacturing overhead costs consists of both fixed and variable cost elements. Required: 1. For both October and November, determine the amount of manufacturing overhead cost added to production. The company had no under-or over-applied overhead in either month. Hint: You might want to use the layout of the schedule of cost of goods manufactured to derive your answer. 2. Use the high-low method to determine the cost formula for manufacturing overhead. 3. If 10,000 units are manufactured during the month, what would be the cost of goods manufactured at that volume? Additional information: Assume the beginning work in process inventory is $12,000 and its ending work in process Question 1 Overview Question 2 Question 3 Question 4 + 7 October November Low activity High activity 8 #units produced 7,000 11,000 9 10 Cost of goods manufactured $ 240,000 $ 345,000 11 Work in process inventory, opening ba S 5,000 $ 17,000 12 Work in process inventory, ending balz S 13 Direct materials cost per unit 14 Direct labour cost per unit sss 2,000 $ 22,000 $ 8 S 8 $ 16 $ 16 15 Manufacuring overhead cost, total ? 16 17 The company's manufacturing overhead costs consists of both fixed and variable cost elements. 18 19 Required: 20 1. For both October and November, determine the amount of manufacturing overhead cost added to production. 21 22 The company had no under-or over-applied overhead in either month. Hint: You might want to use the layout of the schedule of cost of goods manufactured to derive your answer. 23 2. Use the high-low method to determine the cost formula for manufacturing overhead. 25 24 3. If 10,000 units are manufactured during the month, what would be the cost of goods manufactured at that volume? Additional information: Assume the beginning work in process inventory is $12,000 and its ending work in process inventory was $15,000. Also assume there was no over-or under-applied oeverhead cost for the month. 26 27 28 Please write your answer, clearly labelled, below: