Ambrose, Inc is preparing a flexible budget for next year and requires a breakdown of the factory overhead cost into the fixed and variable elements. The following data on the OH cost and direct labor hours worked are available for the last 6 months of this year:
Month	OH Cost	Direct Labor Hours
January	$ 13,160	3,000
February	$ 10,440	2,050
March	$ 14,640	3,450
April	$ 13,240	3,100
May	$ 12,100	2,670
June	$ 11,240	2,350
Total	$ 74,820	16,620
1. Assume that Ambrose uses the high-low method of analysis, determine the variable OH cost per direct labor hour and monthly fixed cost
Additional Sales & Cost information forAmbrose's
Sales Price		$ 71.00
Direct Labor hours per unit		2
Direct labor cost per hour		$ 20.00
Direct Material cost per unit		$ 18.50
2. How many units do they need to sell to breakeven
3. How many units do they need to sell to earn a pre-tax profit of $4,713 in one month
4. Create a contribution margin income statement for the pre-tax profit of $4,713