Reference no: EM132515365

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

                          Machine-Hours              Manufacturing Overhead

January            5,200                                   $310,000

February               3,200                                 224,000

March                  4,900                                   263,800

April                      2,700                                190,000

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

Question b. 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.

Question c. 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