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Crosshill Company's total overhead costs at various levels of activity are presented below: Total Overhead Machine- Month Hours Cost April 47,000 $211,200 May June
Crosshill Company's total overhead costs at various levels of activity are presented below: Total Overhead Machine- Month Hours Cost April 47,000 $211,200 May June July 37,000 $184,200 57,000 67,000 $238,200 $265,200 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) $ 55,500 67,000 Maintenance (mixed) 61,700 Total overhead cost $ 184,200 The company wants to break down the maintenance cost into its variable and fixed cost elements.
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