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Determine variable element of manufacturing overhead cost

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

January                   5,600                    $300,000
February                  3,200                      $224,000
March                     4,900                       $263,800
April                       2,900                        $190,000

Problem 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.)

Problem 2: Use the high-low method to determine the fixed element of monthly overhead cost.

Problem 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.

Problem 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?

Reference no: EM132952726

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