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Ches 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

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Ches 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: Quarter Tiet Second Third Pourth Direct materials 200,000 $100,000 50.000 $ 150,000 Direct labor 160,000 80,000 40.000 120,000 Manufacturing overhead 230.000 205.000 190.000 Total manufacturing costs (a) $590.000 $386.000 $200,000 52 Number of units to be produced b) 80,000 40,000 20,000 50,000 Batted unit product conto). (b) 5.7.30 14.20 Management finds the variation in quarterly unit product costs to be confusing. 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 Required: 1. Assuming the estimated varloble manufacturing overhead cost per unit is $0.60, what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the ossumptions about cost behavior from the first three quarters hold constant, who is the ostimated unit product cost 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 cate for the your rather than computing quarterly overhead votes calculate the unit product cost for all units produced during the your Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Assuming the estimated variable manufacturing overhead cost per unit is $0.60, what must be the estimated total foxed manufacturing overhead cost per quarter

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