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Kendall Ltd., a manufacturing firm, manufactures chains. The company has supplied information from its accounting records for the last year. No. of Factory Month Chains

Kendall Ltd., a manufacturing firm, manufactures chains. The company has supplied information from its accounting records for the last year.

No. of Factory
Month Chains Overhead
Jan 32,500 $58,500
Feb 39,000 $70,200
Mar 37,400 $61,800
Apr 30,900 $58,500
May 28,600 $55,900
Jun 34,100 $60,700
Jul 29,300 $51,400
Aug 34,900 $59,400
Sep 35,800 $70,000
Oct 36,600 $66,000
Nov 42,300 $84,300
Dec 43,900 $81,300

Part 1:

Using the high low method, what is the variable factory overhead per chain?

Using the rounded answer which you just input (above), what is the fixed cost for factory overhead?

Part 2:

If the company increases their production of chains by 45% in any given month, would the factory overhead cost per chain increase, decrease, or stay the same?

Part 3:

ASSUME the total cost of factory overhead equals $8,250 + (1.75 * number of chains manufactured).

What would total cost equal if the company manufacturers 35,400 chains?

Part 4:

If the total cost of factory overhead equals $70,000 and the company manufacturers 35,400 chains, what is the total factory overhead cost per chain manufactured?

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