The following selected data were taken from the accounting records of Shook Industrial Manufacturing:

Month Machine Hours Manufacturing Overhead
May 52,500 $954,000
June 62,600 1,156,000
July 81,000 1,412,300
August 58,500 993,000

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 $177,000 for machine supplies, $25,300 for property taxes, and $1,210,000 for plant maintenance.
Required:
(a) Determine the machine supplies and property taxes for May.
(b) By using the high-low method, analyze Shook'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.

The law of demand is the assertion that ?

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