Question
The following information is available regarding the total manufacturing overhead of Bursa Mfg. Co. for a recent four-month period. Machine- Manufacturing Hours Overhead January
The following information is available regarding the total manufacturing overhead of Bursa Mfg. Co. for a recent four-month period. Machine- Manufacturing Hours Overhead January 5,900 $310,000 February 3,200 224,000 March April 4,900 2,700 263,800 180,000 -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. (Round "Manufacturing overhead cost" to 2 decimal places.) 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. (Round "Manufacturing overhead cost" to 2 decimal places.) 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? (Round "Manufacturing overhead cost" to 2 decimal places.) a-1 Manufacturing overhead cost a-2 Fixed element of monthly overhead cost b Estimated manufacturing overhead cost February c March per machine hour Amount
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