Answer:
1) Machine supplies per direct labor hour |
=$130,200/31,000 =$4.2Per hour |
Therefore, January= 22,000 hours*$4.2 per hour |
= $92,400 |
Depreciation (Fixed) = $25,000 |
2) | High | low |
Direct labor hours | 31,000 | 22,000 |
mar | Jan | |
manufacturing overhead | 8,84,000 | 6,86,000 |
less:Depreciation | -25,000 | -25,000 |
Machine supplies | -1,30,200 | -92,400 |
Plant maintenance cost | 7,28,800 | 5,68,600 |
Variable cost=($7,28,800-$568,600)/31,000-22,000 |
=$160,200/9,000 |
=$17.8 |
Fixed cost =$7,28,800-(31000*17.8) |
= $7,28,800-5,51,800 |
= $177,000 |
Direct labor hours for November = 28,400 hours |
Expected Manufacturing overhead = Machine Supplies + Depreciation + Variable Plant maintenance cost + Fixed plant maintenance cost + Supervisory labor cost |
= (28,400*4.2) + $25,000 + (28,400*17.8) + $177,000 + $140,000 |
= $119,280+ $25,000 + $505,520 + $177,000 + $140,000 |
= $9,66,800 |
Help The following selected data were taken from the accounting records of Metcalf Manufacturing. The company...
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