Q7 Accounting

The following selected data were taken from the accounting records of Manitoba Manufacturing Company. The company uses direct-labor hours as its cost driver for overhead costs. Direct-Labor Manufacturing Month Hours Overhead January 23,000 $750,000 February 22,000 723,000 March 25,000 777,000 April 20,000 684,000 May 27,000 780,000 June 32,000 882,000 June's costs consisted of machine supplies ($128,000), depreciation ($24,000), and plant maintenance ($730,000). These costs Exhibit the following respective behavior: variable, fixed, and semivariable. The manufacturing overhead figures presented in the preceding table do not include supervisory labor cost, which is step-fixed in nature. For volume levels of less than 15,000 hours, supervisory labor amounts to $69,000. The cost is $138,000 from 15,000-29,999 hours and $207,000 when activity reaches 30,000 hours or more. Required: 1. Determine the machine supplies cost and depreciation for April. Supplies cost Depreciation 2. Using the high-low method, calculate the variable cost per direct-labor hour and fixed cost per month for the Company's plant maintenance cost. (Round your variable cost per direct-labor hour to 2 decimal places.) Variable cost per hour Fixed cost per month 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 October if 28,200 direct-labor hours are worked