Crosshil Company's total overhead costs at various levels of activity are presented below. Month April May June July Machine Hours 65,000 55,000 75,000 11,000 Total Overhew Cost $190,000 $155.000 $10),000 $216,000 Assume that the overhead cost above consists of utilities, supervisory Satarles, and maintenance. The breakdown of these costs at the 55.000-machine-hour level of activity in May is as follows Utilities (variable) Supervisory salaries (fixed) Haintenance (mixed) Total overhead cost $2,000 18,000 188.000 $158.000 The company wants to break down the maintenance cost into its variable and foxed cost elements Required: 1. Estimate how much of the $216,000 of overhead cost in July was maintenance cost. (Hint: To do this, flist determine how much of the $216,000 consisted of utilities and supervisory salaries Think about the behaviour of variable and feed costs within the relevant range) (Round the "Variable cost per un to 2 decimal places) Answer is complete but not entirely correct. Maintenance costa de 46.900 3. Express the company's total overhead cost in the form Y =a + bx (Round the "Variable cost per unit" to 2 decimal places) Answer is not complete. Fixed Coot Variable per Machine Hour $ 050 Une cost Supervisory cost Maintenance cost Total overhead cost $ 223 0 Answer is complete and correct. 35 250- 223X 4. What total overhead cost would you expect to be incurred at an activity level of 70.000 machine hours? (Round the variable cost per unit" to 2 decimal places.) Answer is complete but not entirely correct. Totalread cool 150,100 2. Using the high-low method, estimate a cost formula for maintenance. (Round the "Variable cost per unit to 2 decimal places.) High activity level Low activity level Change Answer is complete and correct. Machine Hours Maintenance Cost 81,000 151,020 55.000 108.000 25 000 43 020 os $ per MH Variable cost element Forced cost olomont 1.65 17.250 Answer is complete and correct. 17250 165