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The Following Selected Data Were Taken from the Accounting Records

Question 80

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The following selected data were taken from the accounting records of Schein Industrial Manufacturing:  Month  Machine  Hours  Manufacturing  Overhead  May 46,000$889,000 June 60,0001,130,000 July 68,0001,274,000 August 52,000980,000\begin{array}{llr}\text { Month } & \begin{array}{c}\text { Machine } \\\text { Hours }\end{array} & \begin{array}{c}\text { Manufacturing } \\\text { Overhead }\end{array}\\\text { May } & 46,000 & \$ 889,000 \\\text { June } & 60,000 & 1,130,000 \\\text { July } & 68,000 & 1,274,000 \\\text { August } & 52,000 & 980,000\end{array}
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 $170,000 for machine supplies, $24,000 for property taxes, and $1,080,000 for plant maintenance.
Required:
A. Determine the machine supplies and property taxes for May.
B. By using the high-low method, analyze Schein'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 56,000 machine hours are worked.

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A. Machine supplies: $170,000 ÷ 68,000 h...

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