a. Kirby Fasteners supplies the electronics industry with accessories for cases, disc enclosures, and so on. Below are the costs and volumes for the past six months at its Plant number 6:

Kirby Fasteners
Plant Number 6
January to June Results
Volume (Units)	Total Cost
10,400	$ 189,990
9,340	180,795
12,670	215,400
13,200	228,080
11,200	207,555
10,980	204,212

Required:

a. Use the high-low method to estimate the monthly fixed cost of production and the variable cost of production per unit. b. Kirby analysts forecast a production level of 11,400 units in July. Based on the results from requirement (a), what would be the estimated production costs in July?

b.

Hemlock Nutritional Supplements (HNS) provides you with the following accounting records on manufacturing cost for the most recent month:

Direct materials	$ 126,000
Direct labor	105,000
Variable overhead	92,400

Production was 60,000 units (cases). Fixed manufacturing overhead was $144,000.

For the coming year, costs are expected to increase as follows: direct materials costs by 30 percent, excluding any effect of volume changes; direct labor by 6 percent; and fixed manufacturing overhead by 13.5 percent. Variable manufacturing overhead per unit is expected to remain the same.

Required: b. Determine the costs per unit for the most recent month and for the upcoming month.