Reference no: EM131292921
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The threaded case for this week is:
Shook
The following selected data were taken from the accounting records of Shook Industrial Manufacturing:
Month Machine Hours Manufacturing Overhead
May 46,000 $889,000
June 60,000 1,130,000
July 68,000 1,274,000
August 52,000 980,000
July's costs consisted of machine supplies ($170,000), property taxes ($24,000), and plant maintenance ($1,080,000). These costs exhibit the following respective behavior: variable, fixed, and semi-variable (mixed).
Required:
1. Determine the machine supplies and property taxes for May
2. By using the high-low method, analyze Shook's plant maintenance costs and calculate the monthly fixed portion and the variable cost per machine hour.
3. Assume the present cost behavior patterns continue into future months. Estimate the total amount of manufacturing overhead the company can expect in September if 56,000 machine hours are worked.
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