Chapter 2 Part 2: Lumiere Corporation Graded Homework Assignment Fall 2018 Diane systems for residential and accounting so Lumiere's five-person structure commercial uses. Lumiere's previous CEO was more interested in engineering than management team has no real understanding of the company's cost s sory became the CEO of Lumiere Corporation, a small, local manufacturer of custom lighting Because a new large subdivision of custom-built houses is being planned in Lumiere's could experience growth in the next few years. In order to be prepared to handle that growth, Dine hast how rately p decided that, among many other capabilities, the management team needs to be able to accu Lumiere's manufacturing overhead will change with various levels of production activity. Diane has asked you to help develop the information needed to make that kind of prediction. You queried Lumiere's database and obtained information about manufacturing overhead costs at the 60,000 labor-hour level of activity and the cost behavior for each cost. Additionally, you obtained the total overhead cost for four levels of activity. Tables 1 and 2 present this information. Table 1 Lumiere Corporation June Overhead Cost for 60,000 Labor-Hours Ubilities (variable cost). $48,000 Total overhead cost Table 2 Total Overhead Cost at Different Levels of Production Total $174,000 $222,000 $246,000 $198,000 Labor-Hours Overhead Cost Month June July August September 60,000 80,000 90,000 70,000 Requirements: Using the information presented above, perform the following calculations 1. Calculate Lumiere's utilities cost per unit at the 60,000 labor-hours level of production. 2. Use the information presented in Table 1 and your calculation in Question 1 to determine Lumiere's August's utilities, depreciation, and maintenance costs. 3. Use the high-low method to estimate the variable and fixed components of Lumiere's maintenance cost. 4. Calculate the fixed and variable components of Lumiere's total overhead cost. 5. Express Lumiere's total overhead cost in the linear equation form Y a+bX 5. Calculate the total overhead cost that Diane Hanson should expect Lumiere to incur at an activity level of 85,000 labor-hours