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Crosshill Company's total overhead costs at various i nth April May June uly Machine- Hours 45,000 35,000 55, 000 65,000 Total Overhead Cost $200,000 $172,800

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Crosshill Company's total overhead costs at various i nth April May June uly Machine- Hours 45,000 35,000 55, 000 65,000 Total Overhead Cost $200,000 $172,800 $227,200 $254,400 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 35,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) 56,000 60,000 56,800 Total overhead cost $ 172,800 The company wants to break down the maintenance cost into its variable and fixed cost elements Required 1 Estimate how much of the $254,400 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how much of the $254,400 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.) (Do not round intermediate calculations.)

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