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The following selected data were taken from the accounting records of Colorado Enterprises: Month Machine Hours Manufacturing Overhead May 51,000 $ 939,000 June 62,000 1,150,000

The following selected data were taken from the accounting records of Colorado Enterprises: Month Machine Hours Manufacturing Overhead May 51,000 $ 939,000 June 62,000 1,150,000 July 78,000 1,380,500 August 57,000 990,000 Manufacturing overhead consists of three different costs; (1) machine supplies (variable), (2) property taxes (fixed), and (3) plant maintenance (semivariable). July's overhead costs were $175,500 for machine supplies, $25,000 for property taxes, and $1,180,000 for plant maintenance. Required: Determine the machine supplies and property taxes for May. By using the high-low method, analyze Colorados plant maintenance cost and calculate the monthly fixed portion and the variable cost per machine hour. Assume that present cost behavior patterns continue into future months. Estimate the total amount of manufacturing overhead the company can expect in September if 58,000 machine hours are worked.

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