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The following selected data were taken from the accounting records of Colorado Enterprises: Manufacturing Overhead Month May June July August Machine Hours 50,500 $ 934,000 61,800 1,148,000 77,000 1,369,900 56,500 989,000 Manufacturing overhead consists of three different costs: (1) machine supplies (variable), (2) property taxes (fixed), and (3) plant maintenance (semivariable). July's overhead costs were $175,000 for machine supplies, $24,900 for property taxes, and $1,170,000 for plant maintenance. Required: A. Determine the machine supplies and property taxes for May. B. By using the high-low method, analyze Colorado's plant maintenance cost and calculate the monthly fixed portion and the variable cost per machine hour. C. Assume that present cost behavior patterns continue into future months. Estimate the total amount of manufacturing overhead the company can expect in September if 57,800 machine hours are worked. Note: For all requirements, round intermediate rate calculations to 2 decimal places and all other intermediate calculations to the nearest whole dollar. Round your final answers for "Variable plant maintenance" to 2 decimal places and all other calculations to the nearest whole dollar. A. Machine supplies A. Property taxes B. Plant maintenance in May B. Variable plant maintenance B. Fixed plant maintenance C. Manufacturing overhead per hour

The following selected data were taken from the accounting records of Colorado Enterprises: Manufacturing Overhead Month May June July August Machine Hours 50,500 $ 934,000 61,800 1,148,000 77,000 1,369,900 56,500 989,000 Manufacturing overhead consists of three different costs: (1) machine supplies (variable), (2) property taxes (fixed), and (3) plant maintenance (semivariable). July's overhead costs were $175,000 for machine supplies, $24,900 for property taxes, and $1,170,000 for plant maintenance. Required: A. Determine the machine supplies and property taxes for May. B. By using the high-low method, analyze Colorado's plant maintenance cost and calculate the monthly fixed portion and the variable cost per machine hour. C. Assume that present cost behavior patterns continue into future months. Estimate the total amount of manufacturing overhead the company can expect in September if 57,800 machine hours are worked. Note: For all requirements, round intermediate rate calculations to 2 decimal places and all other intermediate calculations to the nearest whole dollar. Round your final answers for "Variable plant maintenance" to 2 decimal places and all other calculations to the nearest whole dollar. A. Machine supplies A. Property taxes B. Plant maintenance in May B. Variable plant maintenance B. Fixed plant maintenance C. Manufacturing overhead per hour

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 11EB: A company has the following information relating to its production costs: Compute the actual and...
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The following selected data were taken from the accounting records of Colorado Enterprises: Manufacturing Overhead Month May June July August Machine Hours 50,500 $ 934,000 61,800 1,148,000 77,000 1,369,900 56,500 989,000 Manufacturing overhead consists of three different costs: (1) machine supplies (variable), (2) property taxes (fixed), and (3) plant maintenance (semivariable). July's overhead costs were $175,000 for machine supplies, $24,900 for property taxes, and $1,170,000 for plant maintenance. Required: A. Determine the machine supplies and property taxes for May. B. By using the high-low method, analyze Colorado's plant maintenance cost and calculate the monthly fixed portion and the variable cost per machine hour. C. Assume that present cost behavior patterns continue into future months. Estimate the total amount of manufacturing overhead the company can expect in September if 57,800 machine hours are worked. Note: For all requirements, round intermediate rate calculations to 2 decimal places and all other intermediate calculations to the nearest whole dollar. Round your final answers for "Variable plant maintenance" to 2 decimal places and all other calculations to the nearest whole dollar. A. Machine supplies A. Property taxes B. Plant maintenance in May B. Variable plant maintenance B. Fixed plant maintenance C. Manufacturing overhead per hour
Transcribed Image Text:The following selected data were taken from the accounting records of Colorado Enterprises: Manufacturing Overhead Month May June July August Machine Hours 50,500 $ 934,000 61,800 1,148,000 77,000 1,369,900 56,500 989,000 Manufacturing overhead consists of three different costs: (1) machine supplies (variable), (2) property taxes (fixed), and (3) plant maintenance (semivariable). July's overhead costs were $175,000 for machine supplies, $24,900 for property taxes, and $1,170,000 for plant maintenance. Required: A. Determine the machine supplies and property taxes for May. B. By using the high-low method, analyze Colorado's plant maintenance cost and calculate the monthly fixed portion and the variable cost per machine hour. C. Assume that present cost behavior patterns continue into future months. Estimate the total amount of manufacturing overhead the company can expect in September if 57,800 machine hours are worked. Note: For all requirements, round intermediate rate calculations to 2 decimal places and all other intermediate calculations to the nearest whole dollar. Round your final answers for "Variable plant maintenance" to 2 decimal places and all other calculations to the nearest whole dollar. A. Machine supplies A. Property taxes B. Plant maintenance in May B. Variable plant maintenance B. Fixed plant maintenance C. Manufacturing overhead per hour
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