The following information is available regarding the total manufacturing overhead of Bursa Mfg. Co. for a recent four-month period. Machine- Manufacturing Overhead Hours January 6,000 $320,000 February 3,200 224,000 March 4,900 264,000 April 2,500 a.o180,00O а. Use the high-low method to determine: 1. The variable element of manufacturing overhead costs per machine-hour. 2. The fixed element of monthly overhead cost. Bursa expects machine-hours in May to equal 4,500. Use the cost relationships determined in part a to forecast May's manufacturing overhead costs. Suppose Bursa had used the cost relationships determined in part a to estimate the total manu- facturing overhead expected for the months of February and March. By what amounts would b. с. Bursa have over- or underestimated these costs?
The following information is available regarding the total manufacturing overhead of Bursa Mfg. Co. for a recent four-month period. Machine- Manufacturing Overhead Hours January 6,000 $320,000 February 3,200 224,000 March 4,900 264,000 April 2,500 a.o180,00O а. Use the high-low method to determine: 1. The variable element of manufacturing overhead costs per machine-hour. 2. The fixed element of monthly overhead cost. Bursa expects machine-hours in May to equal 4,500. Use the cost relationships determined in part a to forecast May's manufacturing overhead costs. Suppose Bursa had used the cost relationships determined in part a to estimate the total manu- facturing overhead expected for the months of February and March. By what amounts would b. с. Bursa have over- or underestimated these costs?
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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