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?