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Crosshill Company's total overhead costs at various levels of activity are presented below: Total Overhead Month April May June July Machine-Hours 70,000 60,000 80,000
Crosshill Company's total overhead costs at various levels of activity are presented below: Total Overhead Month April May June July Machine-Hours 70,000 60,000 80,000 90,000 Cost $204,400 $183,600 $225,200 $246,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs a 60,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 52,200 21,000 110,400 $183,600 The company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how much of the $246.000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.) (Round the "Variable cost per unit" to 2 decimal nlarar
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