The following table shows the manufacturing overhead costs of Denon Plastic, Inc. for the fi rst six months of their fi rst year of operation:

REQUIRED

A. Classify the two manufacturing overhead costs as fi xed, variable, or mixed, and as direct or indirect.
B. Using the high-low method, create a cost function for (1) the maintenance cost, (2) the material handling cost, and (3) the total costs.
C. Denon Plastic plans to manufacture 1,500 units in July. At this level, what is the total fi xed cost for the manufacturing overhead? What is the total variable manufacturing overhead cost? What is the total costs?

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Total Manufacturing Overhead Costs $41,850 39,380 43,750 Material Handling $4,600 4,080 5,000 5,600 5,400 5,120 Units Maintenance $37,250 35,300 38,750 41,000 40,250 39,200 1,150 1,020 1,250 January February March April 1,400 46,600 45,650 44,320 1,350 May June 1,280