1. Kamakis limited, a manufacturing company is concerned with the variation in its total manufacturing costs. The production manager has therefore requested you to estimate a predictable cost pattern to be used in future cost prediction.

Based on judgment, the plant manager has classified each manufacturing cost as fixed, variable or partly fixed and partly variable. He has provided you with the following information for the month June 2021 when 10,000 units were produced:

Details	Cost (Sh.)	Cost behavior
Direct materials	420,000	Variable
Direct labour	150,000	Variable
Depreciation	80,000	Fixed
Telephone	2,000	Fixed
Other utilities	40,000	20% fixed
Supervisors salary	200,000	80% fixed
Equipment repairs	60,000	10% fixed
Indirect materials	4,000	Variable
Factory maintenance	60,000	90% fixed

Required:

1. Using the accountants analysis method, estimate the fixed cost per month and the variable cost per unit
2. Based on your answer in (i) above, compute the incremental cost of producing 2,000 units