6 Due to the similarity of the equipment in each of the production stages and the company's concentration on a single product, manufacturing overhead is allocated based on volume (i e the units produced) The variable manufacturing overhead rate for 2019 is $160 unit,consisting of Plant Equipment Maintenance $70 Utilities 40 Indirect Materials 30 Other 20 TOTAL $ 160 7 The fixed manufacturing overhead cost for 2019 are so follows Supervisor's salary $ 181,800 Amortization of Plant Equipment 132,000 Insurance 84,000 Training Development 54,750 Property and Business Taxes 48,000 Other 30,000 Total $ 530,550 Amortization is calculated using the straight line method, with no amortization calculated in the year capital assets are acquired 20 Selling and administrative expenses are known to be a mixed cost however, there is a lot of uncertainty about the portion that is fixed Based on prior year experience The lowest level of monthly sales 80units Total Operating Expenses $87,270 Highest level of monthly sales 1,600units Total Operating Expenses $360,780 excluding bad debts and amounts described below These expenses are expected to increase by 3 85 in 2020 due to inflation 58 Selling Administration Expenses 59 Months January February March April May June July August September October November December 60 Variable selling admin exp 179 94 103 85 179 94 103 85 179 94 103 85 179 94 103 85 179 94 103 8 179 94 103 85 179 94 103 859 179 94 103 179 94 103 8 179 94 103 85 179 94 103 8 179 94 103 85 61 Units sold 100 250 250 250 800 1100 1200 1050 700 1000 3000 62 Monthly fixed selling cost 72874 74 103 72874 74 103 72874 74 103 8 72874 74 103 72874 74 103 72874 74 103 72874 74 103 8 72874 74 10 72874 74 10 72874 74 103 72874 74 103 72874 74 103 85 63 Total variable selling expens 860 861 C60 C61 060 D61 E60 E61 F60 F61 G60 G61 H60 H61 160 161 160 361 K60 K61 160 L61 M60 M61 64 Total selling expenses 862 863 062 C63 062 D63 E62 E63 F62 F63 G62 G63 H62 H63 162 163 162 163 K62 K63 162 163 M62 M63

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6  Due to the similarity of the equipment in each of the production stages and the company's concentration on a single product, manufacturing overhead is allocated based on volume (i e  the units produced)  The variable manufacturing overhead rate for 2019 is $160 unit,consisting of  Plant   Equipment Maintenance $70 Utilities 40 Indirect Materials 30 Other 20 TOTAL $ 160 7 The fixed manufacturing overhead cost for 2019 are so follows  Supervisor's salary $ 181,800 Amortization of Plant   Equipment 132,000 Insurance 84,000 Training   Development 54,750 Property and Business Taxes 48,000 Other 30,000 Total $ 530,550 Amortization is calculated using the straight line method, with no amortization calculated in the year capital assets are acquired  20  Selling and administrative expenses are known to be a mixed cost  however, there is a lot of uncertainty about the portion that is fixed  Based on prior year experience  The lowest level of monthly sales  80units     Total Operating Expenses  $87,270  Highest level of monthly sales 1,600units     Total Operating Expenses  $360,780    excluding bad debts and amounts described below These expenses are expected to increase by 3 85 in 2020 due to inflation  58 Selling   Administration Expenses 59 Months January February March April May June July August September October November December 60 Variable selling   admin exp 179 94 103 85  179 94 103 85  179 94 103 85 179 94 103 85  179 94 103 8  179 94 103 85  179 94 103 859 179 94 103  179 94 103 8 179 94 103 85  179 94 103 8  179 94 103 85  61 Units sold 100 250 250 250 800 1100 1200 1050 700 1000 3000 62 Monthly fixed selling cost  72874 74 103  72874 74 103   72874 74 103 8 72874 74 103   72874 74 103 72874 74 103   72874 74 103 8 72874 74 10 72874 74 10  72874 74 103   72874 74 103 72874 74 103 85 63 Total variable selling expens  860 861   C60 C61   060 D61  E60 E61   F60 F61   G60 G61   H60 H61   160 161   160 361   K60 K61   160 L61   M60 M61 64 Total selling expenses   862 863   062 C63   062 D63   E62 E63   F62 F63   G62 G63  H62 H63   162 163   162 163   K62 K63   162 163   M62 M63

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6. Due to the similarity of the equipment in each of the production stages and the company's concentration on a single product, manufacturing overhead is

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