Question 2 (10 marks) The following data has been collected for the assembly department at Simpkins Manufacturing: Observations Assembly Hours Operating costs January 3.000 $15.000 February 2.500 $14.300 March 1,800 $10,750 April 2.200 $14.550 May $14.775 2.250 Required: a. Use the high-low method to determine the estimating cost function with machine-hours as the cost driver. b. If June's estimated machine-hours total 4,200, what are the total estimated costs of the department? Acc 255 - Management Accounting 1 Fall 2020 Lab Assignment 4 - Total 100 marks Chapter 10 & 11 Due: Wednesday, November 4, 2020 Question 3 (10 marks) Gibson Manufacturing has excess capacity in their plant. Manufacturing capacity is 7,000 units per month. The company is able to manufacture and sell 5,000 units each month. Variable costs per unit are direct materials $25 and direct manufacturing labour of $70, and manufacturing overhead of $30. Each unit sells for $150. Fixed costs are $80,000 per month. Recently Gibson has been approached by a local business to fulfill a one-time-only special order for 2,000 units. The business is willing to pay $160 per unit and has requested a different finishing on the product that will result in a $15 increase per unit for direct materials. The finishing will also require additional labour time estimated at $25 increase per unit. Fixed costs and the Gibson's regular business would not be affected if the special order was accepted. Required Determine if Parker and Spitzer should accept this special order? Show all calculations