Analyzing mixed costs Hendry Dairy determined that the total overhead rate for costing purposes is $13-40 per cow per day (referred to as an ani¬ mal day). Of this, $12.60 is the variable portion. Overhead cost information for two levels of monthly activity within the relevant range follow:

a. Determine the fixed and variable values for each of the preceding over¬ head items and determine the total overhead cost formula.

b. Assume that the total overhead rate is based on expected annual capac¬ ity. What is this level of activity for the company?

c. Determine expected overhead costs at the expected annual capacity.

d. If the company raises its expected capacity by 3,000 animal days above the present level, calculate a new total overhead rate for product costing.LO1.

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Indirect materials Indirect labor Maintenance Utilities All other 4,000 Animal Days $12,800 6,000 Animal Days $19,200 28,000 40,000 5,200 6,800 4,000 6,000 7,600 10,800