Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following selected data were taken from the accounting records of Metcalf Manufacturing. The company uses direct- labor hours as its cost driver for


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. Manufacturing Overhead Direct-Labor Month Hours January 31,000 $ 695,000 February 33,000 734,000 March 43,000 893,000 April 34,000 752,750 May June 38,000 36,000 796,500 793,500 March's costs consisted of machine supplies ($219,300), depreciation ($29,500), and plant maintenance ($644,200). 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 $74,500. The cost is $149,000 from 15,000 - 29,999 hours and $223,500 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 29,300 direct-labor hours are worked.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

1 To determine the machine supplies cost and depreciation for January we need to refer to the costs provided in the question The total manufacturing o... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Creating Value in a Dynamic Business Environment

Authors: Ronald W. Hilton

11th edition

125956956X, 978-1259569562

More Books

Students also viewed these Accounting questions

Question

If A = -2 6 1 -7 1 then det (A) = an and A-1 =

Answered: 1 week ago

Question

=+b) What is the maximax choice? Section 23.4

Answered: 1 week ago

Question

Describe effectiveness of reading at night?

Answered: 1 week ago

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago

Question

List and explain the steps of process design. AppendixLO1

Answered: 1 week ago

Question

Illustrate the process design with a suitable example. AppendixLO1

Answered: 1 week ago

Question

Discuss the criteria for make or buy. AppendixLO1

Answered: 1 week ago