The following information is provided by Gibson Company: WIP inventory, January 1 O units Units started 20,000 units Units completed and transferred out 17,500 units WIP inventory, December 31 2,500 units Direct materials $25,300 Direct labour $17,400 Manufacturing overhead $26,700 The units in ending WIP inventory were 85% complete for materials and 35% complete for conversion costs. All manufacturing costs are added during the process. Required A. What are the total equivalent units for direct materials? B. At the end of the year what are the equivalent units for conversion costs? The Arnott Company incurred the following maintenance costs during the past six months: Month Machine Hours Maintenance Cost January 120,000 February 100,000 March 140,000 April 160,000 130,000 June 90,000 $456,000 420,000 492,000 528,000 474,000 402,000 May a. The two points that seem to best represent the relationship between cost and activity are the activity levels of 100,000 and 140,000 machine hours. Using these two points, estimate the fixed and variable components of maintenance costs. b. Develop a cost function that the Arnott Company can use to estimate maintenance cost at different volume levels. c. Estimate maintenance cost for July if the company expects to use 110,000 machine hours