Amfac Company manufactures a single product. The company keeps careful records of manufacturing activities, from which the following information has been extracted:

	Level of Activity
	March			June
Number of units produced		5,600			10,200
Cost of goods manufactured	$	268,200		$	403,000
Work-in-process inventory, beginning		35,000			27,000
Work-in-process inventory, ending		55,000			18,000
Direct materials cost per unit		8			8
Direct labour cost per unit		10			10
Manufacturing overhead cost, total		?			?

The companys manufacturing overhead cost consists of both variable and fixed cost elements. To have data available for planning, management wants to determine how much of the overhead cost is variable with units produced and how much of it is fixed per month.

Required:

1. For both March and June, determine the amount of manufacturing overhead cost added to production. (Hint: A useful way to proceed might be to construct a schedule of cost of goods manufactured.)

2. By means of the highlow method of cost analysis, estimate a cost formula for manufacturing overhead. Express the variable portion of the formula in terms of a variable rate per unit of product.