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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 Cost 47,000
Crosshill Company's total overhead costs at various levels of activity are presented below: Total Overhead Month April May June July Machine- Hours Cost 47,000 $209,250 37,000 $182,750 57,000 $235,750 67,000 $262,250 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 37,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 51,800 67,000 63,950 $ 182,750 The company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $262,250 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how much of the $262,250 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
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