Superior Company produces wooden picnic tables. Each table is constructed out of cedar boards and sells for $500. The tables are sold out of the Company's retail store and online, directly from the manufacturer. In January, they sold 200 tables and in June they sold 1,200 tables. Below is a list of select cost information for Superior Company for two accounting periods:

	January	June
Cedar boards	$80,000	$480,000
Direct labor	120,000	720,000
Manufacturing OH	32,000	92,000
Sales Commissions	8,000	48,000
Office supplies	9,300	9,300
Admin insurance	4,100	4,100

INSTRUCTIONS:

1) For each cost shown above, indicate whether it is fixed, variable, or mixed

2) For the mixed cost, use the high-low method to separate the variable and fixed portions of the cost

3) Use your answer to (2) to write an equation that could be used to predict future total mixed costs at any production level

1) Indicate whether each cost is fixed, variable or mixed by placing an "X" in the appropriate box:

	January	June	Fixed	Variable	Mixed
Cedar boards	$ 80,000	$ 480,000
Direct Labor	120,000	720,000
Manufacturing OH	32,000	92,000
Sales Commissions	8,000	48,000
Office Supplies	9,300	9,300
Admin Insurance	4,100	4,100

2) For the mixed cost from #1, use the High-Low method to separate the variable and fixed portions of the cost (label FC & VC):

3) Use your answers from #2 to write an equation to calculate the total mixed cost at production level (x):

4) If Superior Company produces and sells 800 tables next month, calculate the total manufacturing cost: