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 usesa job-order costing system and computes p produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below ndThird 320,000 $160,000 80,000 240,000 120,000 60,000 30,000 90,000 230,000206 000194,000 labor Total manufacturing costs (a) Number of units to be produced (b) Estimated unit product cost (a) (b) 5.58 7.10 10.132 eferences Management finds the variation in quarterly unit product costs to be confusing 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 and difficult to work with. It has been suggested that Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated 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 rate for the year rather than computing quarterly overhead rates. calculate the unit product cost for all units produced during the year Complete this question hy entering vour answers in the tabs below. Management finds the variation in quarterly unit product costs to be confusing and difficult 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 asuming the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estimated total frxed Required: the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated 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 rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the yea Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming the assumpti cost for the fourth quarter? (Do not round the intermediate calculations and round the "Unit product cost" to 2 decimal ons about cost behavior from the first three quarters hold constant, what is the estimated unit product cost
