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Question 1 A company needs to know the expected amount of factory overheads cost it will incur in the following month. Factory overheads cost in
Question 1 A company needs to know the expected amount of factory overheads cost it will incur in the following month. Factory overheads cost in the previous three months was as follows: Jan Feb Mar Units 8,500 3,450 6,250 Cost $30,200 $12,257 $22,206 Company expects to produce 10,500 units in April and 4,600 in May. a. Determine the change in level of units produced. (2 marks) b. Determine the change in level of the mixed costs. (2 marks) C. Compute the variable cost per unit. (2 marks) d. Compute the total fixed cost. (2 marks) e. Calculate the expected factory overhead cost in April and May using the High-Low method. (4 marks)
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