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The following information is available regarding the total manufacturing overhead of Bursa Mfg. Co. for a recent four-month period. Machine- Hours Manufacturing Overhead January
The following information is available regarding the total manufacturing overhead of Bursa Mfg. Co. for a recent four-month period. Machine- Hours Manufacturing Overhead January 5,300 $ 300,000 February March April 3,200 224,000 4,900 2,800 263,800 180,000 a-1. Use the high-low method to determine the variable element of manufacturing overhead costs per machine-hour. (Round your answer to 2 decimal places.) a-2. Use the high-low method to determine the fixed element of monthly overhead cost. b. Bursa expects machine-hours in May to equal 5,300. Use the cost relationships determined in part a to forecast May's manufacturing overhead costs. c. Suppose Bursa had used the cost relationships determined in part a to estimate the total manufacturing overhead expected for the months of February and March. By what amounts would Bursa have over- or underestimated these costs? a- Manufacturing overhead cost per machine hour 1. a- Fixed element of monthly overhead cost 2. b. Estimated manufacturing overhead cost Amount C. February March
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