Nunavut Company operates a chain of cozy coffee shops. The company's chief executive officer is interested in accumulating some information on the manufacturing overhead costs incurred by the company. You have been asked to analyze the following six months' worth of data.Manufacturing overhead No. of
Month cost Labour Hours
January $60,160 867
February 56,500 624
March 58,900 689
April 63,500 974
May 59,325 730
June 62,400 901
Required:
A. Using the high low method, construct a cost formula for the total manufacturing overhead cost.
B. The CEO would like to limit total manufacturing overhead cost in future months to 20% of total revenues. Will that be possible if total revenues are expected to average $300,000 per month and total labour hours per month are expected to average 1,000? Show all of your calculations.
C. Calculate the estimated total cost of manufacturing overhead assuming 1,000 labour hours are incurred in a given month.

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The Answer of Nunavut Company operates a chain of cozy coffee shops. The company's chief executive officer is interested in accumulating some information on the manufacturing overhead costs incurred by the company. You have been asked to analyze the following six months' worth of data.Manufacturing overhead No. of
Month cost Labour Hours
January $60,160 867
February 56,500 624
March 58,900 689
April 63,500 974
May 59,325 730
June 62,400 901
Required:
A. Using the high low method, construct a cost formula for the total manufacturing overhead cost.
B. The CEO would like to limit total manufacturing overhead cost in future months to 20% of total revenues. Will that be possible if total revenues are expected to average $300,000 per month and total labour hours per month are expected to average 1,000? Show all of your calculations.
C. Calculate the estimated total cost of manufacturing overhead assuming 1,000 labour hours are incurred in a given month.

Nunavut Company Operates a Chain of Cozy Coffee Shops