Prudence, Inc is preparing a flexible budget for next year and requires a breakdown of the factory overhead cost into the fixed and variable elements.
The following data on the OH cost and direct labor hours worked are available for the first six months of this year: 

Month OH Cost Direct Labor Hours

January$14,7003,000

February$11,4352,050

March$16,3353,450

April$14,9903,100

May$13,5602,670

June$12,6752,350

Total$83,695 16,620

1.. Assume that Prudence uses the high-low method of analysis, determine the variable OH cost per direct labor hour and monthly fixed cost

Additional Sales & Cost information for Prudence's

Sales Price$ 25.35

Direct Labor hours per unit0.50

Direct labor cost per hour$20.00

Direct Material cost per unit$6.50

 

2. How many units do they need to sell to breakeven?

 

3. How many units do they need to sell to earn a pre-tax profit of $35,074 in one month?