6. Fagesi Ltd incurred the costs as indicate below. During the six months ended 30 Dec, these costs changed, but not in direct relation to the volume.

MONTH	NUMBER OF UNITS PRODUCED	HISTORICAL COST
JULY	980	P19 800
AUGUST	1000	P20 000
SEPT	1050	P20 500
OCT	950	P19 500
NOV	1040	P20 400
DEC	1060	P20 600

Required:

a) Use high-low method to determine the variable cost per unit and the total fixed costs (7marks)

b) Forecast on the total cost if an estimated 1 100 units are to be manufactured in January the following year (3marks)