How to estimate the total manufacturing


The following information regardingthe total overhead of a company for a 4 month period:

machine hrs manufacturingoverhead
Jan.....................................................5,500 $ 311,500
Feb....................................................3,200 224,000
Mar....................................................4,900 263,800
Apr....................................................2,800 184,600

**$47 is the variable element of manufacturing cost permachine-hour

**$53,000 is the fixed element of monthly overhead cost

question: Suppose the company had used both of the above **costrelationships** to estimate the total manufacturing overhead forthe months of February and March. By what amounts would the company have over/under estimated these cost?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: How to estimate the total manufacturing
Reference No:- TGS0719208

Expected delivery within 24 Hours