A. Company ABC is a manufacturing company that provided the following information:

1. Assume the following hours of cleaning work and the total cleaning cost (mixed cost) for the six months:

Number of hours Total cleaning cost

January 8 $1,520

February 10 $1,700

March 13 $1,800

April 16 $2,180

May 14 $2,000

June 11 $1,750

Using the high-low method, estimate the cost formula for this cleaning cost (2 marks) and discuss the drawbacks of the high-low method (2 marks).

2. In the production of July, direct materials used totaled $180. Direct labor was $170 and the manufacturing overhead was $100. The beginning work in process was $1,250 and ending work in process was $300. The beginning finished goods were $2,000 and ending finished goods was $1,000. What were total manufacturing costs incurred for the month? (2 marks) What was the cost of goods manufactured during the month? (2 marks) What was the cost of goods sold for the month? (2 marks)

B. If you were a Chief Financial Officer (CFO), please identify the five tools/techniques that can be used in your company? Please also briefly explain why. (10 marks)