The following selected data were taken from the accounting records of Manitoba Manufacturing Company. The company uses direct-labor hours as its cost driver for overhead costs.
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June’s costs consisted of machine supplies ($153,000), depreciation ($22,500), and plant maintenance ($703,500).
These costs Exhibit the following respective behavior: variable, fixed, and semivariable.
The manufacturing overhead figures presented in the preceding table do not include supervisory labor cost, which is step-fixed in nature. For volume levels of less than 15,000 hours, supervisory labor amounts to $67,500. The cost is $135,000 from 15,000–29,999 hours and $202,500 when activity reaches 30,000 hours or more.
Required: