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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
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 Direct-Labor Manufacturing Month January February March April May June Hours 18,000 20,000 29,000 21,000 25,000 23,000 Overhead $682,000 721,000 880,000 749,500 777,000 774,000 March's costs consisted of machine supplies ($110,200), depreciation ($23,000), and plant maintenance ($746,800). 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, supervisory labor amounts to $68,000. The cost is $136,000 from 15,000- 29,999 hours and $204,000 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 28,000 direct-labor hours are worked
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