Amfac Company manufacture a single product. The company keeps careful records of manufacturing activities from which the following information has been extracted:
Number of units produced
cost of goods manufactered
work in process inventory,beginning
work in process inventory,ending
direct materials cost per unit
direct labor cost per unit
manufacturing overhead cost,total
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.