Section 2: Cost estimation and prediction 13 marks Port 1' 9 min Sentinels Ltd assembles and exports sensors. The following information is available for the
Section 2: Cost estimation and prediction 13 marks Port 1' 9 min Sentinels Ltd assembles and exports sensors. The following information is available for the month: l'vIonthly depreciation on factory building and equipment totals $3U,'. Invoices 'om suppliers show the plastic= magnets and circuit hoards used in producing sensors cost, on average, 313.10 per unit. 'Wage records show that wages and oncosts for production employees average $0.132 per sensor. Fixed daily charges for electricityr totals $3, per month and usage costs average $D5 per sensor. Payroll records show engineers\" and factory supervisorsr salaries total SHJUD per month. Machines are maintained two times each month. The cost per round of maintenance is 36,300. Sales commission paid to salespersons average $5,0 per month. Required: 1. Use the accountclassification method to express the cost function for estimating total monthly production cost. (7" marks) . Predict the production cost for next month, assuming that l sensors will he maimf'actured. (2 marks)
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