Question 1 The following information is for the general Production Company: 2005 2006 Units produced 257,000 326,000 $611,660 $775,880 $1,662,790 $2,109,220 $1,781,820 $1,868,760 Required: Assuming units produced is the activity base, use the High-Low method to determine the variable cost per unit and the fixed cost of EACH of the costs listed above. (15 marks) Question 2 Blue Water Travel operates a chain of travel offices across USA. Blue Water Travel's home office is in New York. There are six sales offices located in Florida. Required: If the cost object is one of the sales offices in Florida, indicate which of the following would describe a direct cost (D) and which would describe an indirect cost (1). Rent for the Florida district office building 2. Rent for the sales office 3. The salary of the sales office manager 4. The salary of a sales associate 5 The Company president's salary (5 marks) Question 3 The following are several representative costs incurred in a typical manufacturing firm. For each of the costs, indicate in the space provided whether the cost is direct material (DM), direct labour (DL), manufacturing overhead (MO), selling (S),or administrative (ADMN) costs. Material incorporated into products 2. Sales supplies 3. Supplies used in the factory 4 Wages of plant security guard 5. Wages of security guard for the sales office 6. Depreciation of a file cabinet used in the factory 7. Depreciation of a file cabinet used in the general accounting office 8. President's salary9. Salary of the President's secretary 10. Manufacturing vice president's salary 11. Salary of the manufacturing vice president's secretary 12 Wages paid to production-line workers 13 Factory rent 14 . Accounting office rent 15 . Depreciation of a copy machine used in the sales department (15marks) Question 4 The following information is taken from Sweepy Broom Manufacturing Company Number of brooms Total production Cost produced Jan 9800 $17100 Feb 7000 $15000 Mar 8000 $16000 Apr 7500 $15500 May 10100 $17200 Jun 9000 $17000 Jul 10500 $19000 Aug 11600 $20000 Sep 10600 $18200 Oct 8500 $16800 Nov 12100 $20500 Dec 1 1000 $18000 Required: Using the High-Low Method, determine the following: a. The variable production cost per unit (3 marks) b. The total fixed production cost (8 marks) c. The expected production cost to produce 12000 & 7300 brooms. (4 marks) (15MARKS)