Reference no: EM131841003

Question - Print Inc. of Ottawa, producers of finance and accounting books, reflected the following information at December 31, 2015, and 2016.

	2015-12-31	2016-12-31
Production	100,000 units	200,000 units
Cost of goods manufactured	51,400,000	$2,600,000
Work in process inventory, beginning	$40,000	$20,000
Work in process inventory, ending	$20,000	$60,000
Direct materials inventory, per unit	$4	$4
Direct labor, per unit	57.5	$7.5
Manufacturing overhead	?	?

Manufacturing overhead consists of both variable and fused cost elements. Management wants to determine the overhead breakdown between variable and fixed cost per year.

REQUIRED

1. For both years, determine total manufacturing overhead costs.

2. Determine the cost formula for manufacturing overhead by means of the high-low method of cost analysis. Express the variable portion in terms of variable cost per unit of production.

3. If 200,000 units are produced during a period what would be the total manufacturing cost?