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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

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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: Management finds the varlation 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. Required: 1. Assuming the ostimated variable manufacturing overhead cost per unit is 50.60, what must be the estimeted total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behovior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the ostimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rote for the year rother than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year. Complete this question by entering your answers in the tabs below. Assuming the eatimated variabie manufacturing overhead cost per unit is so, 60 , whit musk be the estimated totai froed manufactunno oweheed cont per quarten

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