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.

8.Aside from amortization, all other manufacturing costs are expected to increase by 3.85% in 2020 due to inflation

17.Fixed manufacturing overhead costs are incurred evenly over the year and "cash related" amounts are paid as incurred.

A B C D E F G H J K L M 37 Manufacturing Overhead Budget 38 Months January February March April May June July August September October November December 39 Variable overhead per unit in 2020 166.16 166.16 166.16 166.16 166.16 166.16 166.16 166.16 166.16 166.16 166.16 166.16 40 No. of units 122.5 250 250 332.5 845 1115 1177.5 937.5 360 745 1300 2572.5 41 Total variable overhead cost =839*B40 =C39*C40 =D39*D40 =E39 640 =F39*F40 =G39*G40 =H39*H40 =139*140 =J39 J40 =K39*K40 =139*L40 =M39*M40 42 Fixed overheads in 2019 43 Amortisation expenses =+N43/12 =+N43/12 =+N43/12 11000 11000 11000 11000 11000 11000 11000 11000 11000 44 Fixed overheads in 2020 =N44/12 34491.18125 34491.18125 34491.18125 34491.18125 34491.18125 34491.18125 34491.18125 34491.18125 34491.18125 34491.18125 34491.18125 45 Total manufacturing overhead =+841+844 =+C41+C44 =+D41+D44 =+E41+E44 =+F41+F44 =+G41+G44 =+H41+H44 =+141+144 =+J41+144 =+K41+K44 =+141+144 =+M41+M44 B C D E F G H K M