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Question 1.3 (15 marks) The following cost data was extracted from the records of Bread Makers Bakeries (BMB) for the four months ended 30 April
Question 1.3 (15 marks) The following cost data was extracted from the records of Bread Makers Bakeries (BMB) for the four months ended 30 April 2021: Month Production volume Total costs Units N$ January 830 10 000 February 930 11 000 March 11 400 April 1 020 11 900 970 BMB is in the process of planning production for May 2021. They are not sure how many units they will manufacture but have budgeted to only spend N$12 000 in May 2021. The unit costs and cost behaviour can be assumed to be the same as the other four months. Requirement Mark Sub- Total total 5 5 10 15 1.3.1 Using the high low method of separating mixed costs, determine how many units BMB will manufacture in May 2021. 1.3.2 Using the least squares method of separating mixed cost, determine how much will the fixed cost be in May 2021. Note: Show all the necessary workings or steps that are required to reach the answer. Marks are available for these. Total 15
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