CanCo Company manufactures a single product. The company keeps careful records of manufacturing activities, from which the
following information has been extracted:
The company's manufacturing overhead cost consists of both variable and fixed cost elements. To have data available for planning,
management wants to determine how much of the overhead cost is variable with units produced and how much of it is fixed per
month.
Required:
For both March and June, determine the amount of manufacturing overhead cost added to production. Hint: A useful way to
proceed might be to construct a schedule of cost of goods manufactured.
By means of the highlow method of cost analysis, estimate a cost formula for manufacturing overhead: Express the variable portion
of the formula in terms of a variable rate per unit of product.
Assume that CanCo produced units in September. What will be the cost of goods manufactured? Assume that beginning and
ending workinprocess inventories were $ and $ respectively
Cost of goods manufactured
