Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Management finds the variation in quarterly unit product costs to be confusing. It hasibeen suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $2.00 , what must be the estimated total fixed manufacturing ovechead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant. what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates. calculate the unit product cost for ali units produced during the year. Complete this question by entering your answers in the tabs below. Assuming the estimated variable manufacturing overhead cost per unit is $2.00 , what must be the estimated total fixed manufacturing overhead cost per quarter? Complete this question by entering your answers in the tabs below. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? (0o not round intermediate calculations and round your final answer to 2 decimal places.) Complete this question by entering your answers in the tabs below. Assuming the company computes one predetermined overhead rate for the year rather than computing quartenly overhead rates, calculate the unit product cost for all units produced during the year. (Do not round intermediate calculstions and round your finat answer to 2 decimal places.) .

1. Kingsport Containers Company makes a single product that is subject to wide seasonal variations
in demand. The company uses a job-order costing system and computes plantwide predetermined
overhead rates on a quarterly basis using the number of units to be produced as the allocation
base. Its estimated costs, by quarter, for the coming year are given below: Management finds the
variation in quarterly unit product costs to be confusing. It hasibeen suggested that the problem
lies with manufacturing overhead because it is the largest element of total manufacturing cost.
Accordingly, you have been asked to find a more appropriate way of assigning manufacturing
overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing
overhead cost per unit is $2.00 , what must be the estimated total fixed manufacturing ovechead
cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters
hold constant. what is the estimated unit product cost for the fourth quarter? 3. What is causing
the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the
company computes one predetermined overhead rate for the year rather than computing quarterly
overhead rates. calculate the unit product cost for ali units produced during the year. Complete
this question by entering your answers in the tabs below. Assuming the estimated variable
manufacturing overhead cost per unit is $2.00 , what must be the estimated total fixed
manufacturing overhead cost per quarter? Complete this question by entering your answers in the
tabs below. Assuming the assumptions about cost behavior from the first three quarters hold
constant, what is the estimated unit product cost for the fourth quarter? (0o not round
intermediate calculations and round your final answer to 2 decimal places.) Complete this
question by entering your answers in the tabs below. Assuming the company computes one
predetermined overhead rate for the year rather than computing quartenly overhead rates,
calculate the unit product cost for all units produced during the year. (Do not round intermediate
calculstions and round your finat answer to 2 decimal places.)