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1) Find variable cost per hour of direct labor 2) Fixed cost per month portion 3) Find manufacturing overhead cost during November at 29,300 direct
1) Find variable cost per hour of direct labor
The following selected data were taken from the accounting records of Metcalf Manufacturing. The company as its cost driver for overhead costs. uses direct -labor hours Direct-Labor Manufacturing Month January February March April May une Hours Overhead $695,00 734,808 893,000 752,750 796,580 793,500 points 31,000 33,000 43,800 34,800 38,8e0 36,890 Book Print March's costs consisted of machine supplies ($219,300), depreciation ($29,500), and plant maintenance ($644,200). These costs exhibit the following respective behavior: variable, fixed, and semivariable. The manufacturing overhead figures presented in the preceding table do not include Metcalf's supervisory labor cost, which is step- fixed in nature. For volume levels of less than 15,000 hours, supervisory labor amounts to $74,500. The cost is $149,000 from 15.000- 29,999 hours and $223,500 when activity reaches 30,000 hours or more. Required 1. Determine the machine supplies cost and depreciation for January 2. Using the high-low method, analyze Metcalf's plant maintenance cost and calculate the monthly fixed portion and the variable cost per direct-labor hour 3. Assume that present cost behavior patterns continue into the latter half of the year. Estimate the total amount of manufacturing overhead the company can expect in November if 29,300 direct-labor hours are worked 2) Fixed cost per month portion
3) Find manufacturing overhead cost during November at 29,300 direct hours worked.
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