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Crosshill Company's total overhead costs at various levels of activity are presented below: Total Machine- Overhead Month Hours Cost April 46,000 $184, 780 May 36,

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Crosshill Company's total overhead costs at various levels of activity are presented below: Total Machine- Overhead Month Hours Cost April 46,000 $184, 780 May 36, 000 $158, 480 June 56,000 $211, 080 July 66,000 $237, 380 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 36,000-machine-hour level of activity in May is as follows: Utilities [variable) 54,000 Supervisory salaries (fixed) 44,000 Maintenance ( mixed ) 60, 480 Total overhead cost 158, 480 The company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $237,380 of overhead cost in July was maintenance cost. (Hint To do this, first determine how much of the $237,380 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 2. Using the high-low method, estimate a cost formula for maintenance. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.)Y . X 3. Express the company's total overhead cost in the form Y= a + bX. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.) Variable Cost per Machine-Hour Fixed Cost Utilities cost Supervisory salaries cost Maintenance cost Total overhead cost 0.00 5 + X 4. What total overhead cost would you expect to be incurred at an activity level of 41,000 machine-hours? (Do not round intermediate calculations.) Total overhead cost

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