Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my work 4 Crosshill Company's total overhead costs at various levels of activity are presented below: 10 points Month Apr May June July Machine-

image text in transcribed
image text in transcribed
image text in transcribed
Check my work 4 Crosshill Company's total overhead costs at various levels of activity are presented below: 10 points Month Apr May June July Machine- Hours 51.000 11,000 61,000 71,000 Total Overhead Cost 5186,540 $162,140 $210,940 $235,340 093234 Book Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 41000 machine hour level of activity in May is as follows: Heteren 53,300 49,000 utilities (variable) Supervisory wallel tined Maintenance (mixed) total overhead con 162,140 The company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Esumate how much of the $235.340 of overhead cost in July was maintenance cost. Hint. To do this first determine how much of the $235 340 consisted of utilities and supervisory stories. Think about the behaviour of varioblo and Mixed costs within the relevant range) (Do not round Intermediate calculations.) Malminante continly Check my work 4 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.) 10 polis Machine Hours Maintenance Cost 803320 High activity level Low activity level Change - per Prim Variable con element Fored cost element eferences Check my work 4 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.) 10 points Variable Cont per Machine-Hour Fixed Cost 03:10 Unites cost Supervisor salaries Cost Maintenance cost Tokal overhead cout B 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) Totalcars.com

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these Accounting questions