ebin.pub_managen X ebin.pub_manager X Qis supervisor salari x + C File C:/Users/gavin/Downloads/ebin.pub_manager... Q 18 304 of 881 a The following selected data were taken from the accounting records of Metcalf Manufacturing. The company uses direct-labor hours as its cost driver for overhead costs. Problem 6-36 Cost Behavior and Analysis High-Low Method (LO 6-2, 6-5) Month January February March April Direct-Labor Hours 23.000 30,000 34,000 26,000 25,000 28,000 Manufacturing Overhead $454,000 2. Variable maintenance cost $9 per hour 517,000 586.000 499,500 480.000 515,000 May June March's costs consisted of machine supplies ($102,000), depreciation ($15,000), and plant maintenance ($469,000). 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, super- visory labor amounts to $45,000. The cost is $90,000 from 15,000-29,999 hours and $135,000 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 29.500 direct- labor hours are worked. 272 Problem 6-37 Cost Behavior and Analysis High Low Method (LO 6-2, 6-4, 6-5) Chapter 6 Activity Analysis, Cost Behavior, and Cost Estimation 4. Briefly explain the difference between a fixed cost and a step-fixed cost. 5. Assume that a company has a step-fixed cost. Generally speaking, where on a step should the firm attempt to operate if it desires to achieve a maximum return on its investment? Antioch Extraction, which mines ore in Montana, uses a calendar year for both financial-reporting and tax purposes. The following selected costs were incurred in December, the low point of activity, when 1,500 tons of ore were extracted: 39F Cloudy I Search