Nurally Inc manufactures a single product Selected data from the company's cost records for two recent months are given below LEVEL OF ACTIVITY July Low October High Number of units produced 9,000 12,000 Cost of goods manufactured $285,000 $390,000 Work in process inventory, beginning 14,000 22,000 Work in process inventory, ending 25,000 15,000 Direct materials cost per unit 15 15 Direct labour cost per unit 6 6 Manufacturing overhead cost, total The company's manufacturing overhead cost consists of both variable and fixed cost elements To have data available for planning, management wants to determine how much of the overhead cost is variable with units produced and how much of it is fixed per year Required For both July and October, estimate the amount of manufacturing overhead cost added to production The company had no under applied or over applied overhead in either month (Hint Construct a schedule of cost of goods manufactured ) Using the high low method, estimate a cost formula for manufacturing overhead Express the variable portion of the formula in terms of a variable rate per unit of product If 9,500 units are produced during a month, what will the cost of goods manufactured be (Assume that the company's beginning work in process inventory for the month is $16,000 and that it's ending work in process inventory is $19,000 Also assume that there is no under applied or over applied overhead cost for the month )

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Nurally Inc. manufactures a single product. Selected data from the company's cost records for two recent months are given below: LEVEL OF ACTIVITY July -

Nurally Inc. manufactures a single product. Selected data from the company's cost records for two recent months are given below:

LEVEL OF ACTIVITY

July - Low October - High

Number of units produced 9,000 12,000

Cost of goods manufactured $285,000 $390,000

Work in process inventory, beginning 14,000 22,000

Work in process inventory, ending 25,000 15,000

Direct materials cost per unit 15 15

Direct labour cost per unit 6 6

Manufacturing overhead cost, total ? ?

The company's manufacturing overhead cost consists of both variable and fixed cost elements. To have data available for planning, management wants to determine how much of the overhead cost is variable with units produced and how much of it is fixed per year.

Required:

For both July and October, estimate the amount of manufacturing overhead cost added to production. The company had no under-applied or over-applied overhead in either month. (Hint: Construct a schedule of cost of goods manufactured.)

Using the high-low method, estimate a cost formula for manufacturing overhead. Express the variable portion of the formula in terms of a variable rate per unit of product.

If 9,500 units are produced during a month, what will the cost of goods manufactured be? (Assume that the company's beginning work in process inventory for the month is $16,000 and that it's ending work in process inventory is $19,000. Also assume that there is no under-applied or over-applied overhead cost for the month.)