Answered step by step
Verified Expert Solution
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 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. Month January February March April May June Direct-Labor Hours 20,000 22,000 32,000 23, 000 27,000 25,000 Manufacturing Overhead $684, 000 723,000 882, 000 750,000 780,000 777,000 March's costs consisted of machine supplies ($128,000), depreciation ($24,000), and plant maintenance ($730,000). 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 $69,000. The cost is $138,000 from 15,000- 29,999 hours and $207,000 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 28,200 direct-labor hours are worked. Required 1 Required 2 Required 3 Determine the machine supplies cost and depreciation for January. Machine supplies cost Depreciation $ $ 80,000 24,000 Required 1 Required 2 > Required 1 Required 2 Required 3 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. (Round your "Variable cost per hour" answer to 2 decimal places.) Variable cost per hour Fixed cost per month Required 1 Required 2 Required 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 28,200 direct-labor hours are worked. Manufacturing overhead cost Required 2 Required 3 >
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started