The following selected data were taken from the

company uses direct$-$labor hours as its cost driver for overhead costs.

March's costs consisted of machine supplies $($$$102,000),$ depreciation $($$$15,000),$ and plant

maintenance $($$$469,000).$ 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 $$45,000.$ The cost is $$90,000$ from $15,000-29,999$ hours and $$135,000$

when activity reaches $30,000$ hours or more.

Required:

Determine the machine supplies cost and depreciation for January.

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.

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 $29,500$ direct$-$

labor hours are worked.

Briefly explain the difference between a fixed cost and a step$-$fixed cost.

Assume that a company has a step$-$fixed cost. Generally speaking, where on a step should the

firm attempt to operate if it desires to achieve a maximum return on its investment?