The Following Data Were Taken from the Accounting Records of Guild

question 32

Essay

The following data were taken from the accounting records of Guild Corporation:
$\begin{array} { l c c } \\underline {\text { Month }} & \begin{array} { c } \text { Machine } \\\underline {\text { Hours }}\end{array} & \begin{array} { c } \text { Manufacturing } \\\underline {\text { Overhead }}\end{array} \\\text { August } & 46,000 & \$ 889,000 \\\text { September } & 60,000 & 1,130,000 \\\text { October } & 78,000 & 1,300,000 \\\text { November } & 62,000 & 1,000,000\end{array}$ October's costs consisted of machine supplies ($190,000), property taxes ($30,000), and plant maintenance ($1,080,000). These costs exhibit the following respective behaviour: variable, fixed, and semi-variable.
Required:
A. Determine the machine supplies and property taxes for August. Round all calculations to two decimal places.
B. By using the high-low method, analyze Guild's plant maintenance cost and calculate the monthly fixed portion and the variable cost per machine hour.
C. Assume that present cost behaviour patterns continue into future months. Estimate the total amount of manufacturing overhead Guild can expect in December if 56,000 machine hours are worked.

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