Wolf Enterprises manufactures widgets at a single manufacturing facility. Corporate headquarters are located at the same site. Historical cost information shows the average costs at the following production levels .

Production in units	3,000	3,750	4,500
Cost of goods manufactured
Direct Materials	$ 198,000	$ 247,500	$297,000
Direct Labor	126,000	157,500	189,000
Overhead
Building depreciation-factory portion	5,000	5,000	5,000
Equipment lease	4,500	4,500	4,500
Factory supplies	1,600	1,930	2,260
Indirect Labor	5,500	5,500	5,500
Quality Inspection Costs	13,360	14,200	15,040
Selling and Administrative Expenses
Shipping	45,500	51,875	58,250
Advertising expense	50,000	50,000	50,000
Salaries and commissions	137,000	155,000	173,000
Insurance expense	10,000	10,000	10,000
Total	$ 596,460	$ 700,005	$ 809,550

B. Using the high-low method, separate each mixed cost into variable and fixed elements. State the cost formula for each mixed cost. Show all your work and computations.

Use the chart below:

Mixed Cost (Name)	Cost Formula (Y = a + bx form)	Supporting Computations

C. Determine the expected total costs (identify each cost separately) at a production level of 5,000 widgets. Show computations. You should arrive at a total cost figure.

Use the chart below:

	Cost	Supporting Computations
Direct Materials
Direct Labor
Building dep-factory portion
Equipment lease
Factory supplies
Indirect Labor
Quality Inspection Costs
Shipping
Advertising expense
Salaries and commissions
Insurance expense
TOTAL COST