QUESTION 2(15 marks) You have recently joined Sunshine Company as an accountant. Required: (Each question is to be considered independently.) A)You have been given the following 6 months information from the Sunshine Company to analyze the overhead costs Month April May June July August September Overhead cost $60,160 56,500 58,900 63,500 59,325 62,400 No. of Machine Hours 867 624 689 974 730 901 Using the high low method, construct a cost formula for the total quarterly overhead cost. Assume that 8,600 machine hours are budgeted for the coming quarter. Use the formula to calculate the overheads for the coming quarter. (5 marks) B) You have also been given the following information from the Sunshine Company for the month of December 2021: Beginning raw materials inventory Indirect labour Direct labour Beginning work in process inventory Ending work in process inventory Ending finished goods inventory Purchases of raw materials Administrative expenses Indirect materials Beginning finished goods inventory Distribution expenses Material handling Factory supplies Depreciation of production machines Printing of annual report expenses Sales revenue Ending raw materials inventory $'000 15,000 6,000 20,000 15,000 24,000 48,000 70,000 6,700 5,000 30,000 7,600 4,500 3,500 6,000 2,000 450,000 10,000 Prepare the income statement for Sunshine Company for the month of December 2021. Show all workings clearly. (7 marks) C) Explain to management why would cost behaviour change outside of the relevant range? Give an example