The Following Selected Data Were Taken from the Accounting Records

question 52

Essay

The following selected data were taken from the accounting records of Schein Industrial Manufacturing: $\begin{array}{llr}\text { Month } & \begin{array}{c}\text { Machine } \\\text { Hours }\end{array} & \begin{array}{c}\text { Manufacturing } \\\text { Overhead }\end{array}\\\text { May } & 46,000 & \$ 889,000 \\\text { June } & 60,000 & 1,130,000 \\\text { July } & 68,000 & 1,274,000 \\\text { August } & 52,000 & 980,000\end{array}$
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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Definitions:

Production Problem

Issues or obstacles encountered in the process of creating goods or services, affecting output or quality.

American Public Health Association

A professional organization dedicated to improving public health and achieving equity in health status.

Changing Conditions

The dynamic nature of situations, environments, or circumstances that are in a state of flux.

Recognition Rewards

Acknowledgments or incentives given to individuals or groups for their achievements and contributions, often used as a motivational strategy in various settings.