The following selected data were taken from the accounting records of Metcalf Manufacturing. The company uses...

Transcribed Image Text:

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 Hours Overhead January 37,000 $701,000 February 39,000 740,000 March 52,000 899,000 April 40,000 754,250 May June 44,000 42,000 805,500 802,500 March's costs consisted of machine supplies ($296,400), depreciation ($32,500), and plant maintenance ($570,100). 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 $77,500. The cost is $155,000 from 15,000- 29,999 hours and $232,500 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 29,900 direct-labor hours are worked. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the machine supplies cost and depreciation for January. (Do not round your intermediate values.) Machine supplies cost Depreciation $ 296,400 $ 32,500 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 Hours Overhead January 37,000 $701,000 February 39,000 740,000 March 52,000 899,000 April 40,000 754,250 May June 44,000 42,000 805,500 802,500 March's costs consisted of machine supplies ($296,400), depreciation ($32,500), and plant maintenance ($570,100). 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 $77,500. The cost is $155,000 from 15,000- 29,999 hours and $232,500 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 29,900 direct-labor hours are worked. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the machine supplies cost and depreciation for January. (Do not round your intermediate values.) Machine supplies cost Depreciation $ 296,400 $ 32,500