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can you guys please solve the whole question for me. Crosshill Company's total overhead costs at various levels of activity are presented below: Month April
can you guys please solve the whole question for me.
Crosshill Company's total overhead costs at various levels of activity are presented below: Month April May June July Machine- Hours 51,000 41,000 61,000 71,000 Total Overhead Cost $191,980 $ 166,180 $217,780 $243,580 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 41,000-machine-hour level of activity in May is as follows: $ Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) 57,400 46,000 62,780 Total overhead cost $ 166,180 The company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $243,580 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how much of the $243,580 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.) (Do not round intermediate calculations.) Maintenance cost in July $ 98,180 2. Using the high-low method, estimate a cost formula for maintenance. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.) High activity level Low activity level Change Machine- Maintenance Hours Cost 71,000 $ 98,180 41,000 62,780 30,000 $ 35,400 Variable cost element $ 1.40 per MH Fixed cost element 2 Y = + $ 1.40 X 3. Express the company's total overhead cost in the form Y = a +bX. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.) Variable Cost per Machine-Hour Fixed Cost Utilities cost Supervisory salaries cost Maintenance cost Total overhead cost $ 0.00 $ 0 Y= 4. What total overhead cost would you expect to be incurred at an activity level of 46,000 machine-hours? (Do not round intermediate calculations.) Total overhead costStep by Step Solution
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