Reference no: EM132626216

The following information is available regarding the total manufacturing overhead of Bursa Mfg. Co. for a recent four-month period.

                                 Machine-Hours       Manufacturing Overhead

January                      5,200                          $310,000

February                     3,200                          224,000

March                          4,900                           263,800

April                                2,800                           190,000

Question 1: Use the high-low method to determine the variable element of manufacturing overhead costs per machine-hour. (Round your answer to 2 decimal places.)

Question 2: Use the high-low method to determine the fixed element of monthly overhead cost. (Round "Manufacturing overhead cost" to 2 decimal places.)

Question 3: Bursa expects machine-hours in May to equal 5,300. Use the cost relationships determined in part a to forecast May's manufacturing overhead costs. (Round "Manufacturing overhead cost" to 2 decimal places.)

Question 4: Suppose Bursa had used the cost relationships determined in part a to estimate the total manufacturing overhead expected for the months of February and March. By what amounts would Bursa have over- or underestimated these costs? (Round "Manufacturing overhead cost" to 2 decimal places.)