Chapter 2 Cutting Finishing Direct. Sweaten Company Had No Jobs b Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate con Exercise 2-11 Varying Plantwide Predetermined Overhead Rates [LO2-1, LO2-2, LO2-3 Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below Direct material Manut aeturarvg overhead Bunber ot unita to be produced (b) Estinated unit produet cost a)(b) $200.00 $10.0050,003150,000 .000 40,000 120,000 60,000 80, 240 000 216 000 204 900 5.00 6.60 $ .0 Management finds the variation in quarterly unit product costs to be confusing and difficuit to work with. it has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product 1 Assuming the estimated variable manufacturing overhead cost per unit is S0.40, what must be the estimated total fixed 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost overhead cost per quarter? for the fourth quarter? 3 What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4 Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates calculate the unit product cost for all units produced during the year O Answer is complete but net entirely correct. Complete this question by entering your answers in the tabs below 889 3