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Crosshill Company's total overhead costs at various levels of activity are presented below: Fatal Overhead Month MachineEpure Cost April 54,000 $196,000 May 44,000 $167,000 June
Crosshill Company's total overhead costs at various levels of activity are presented below: Fatal Overhead Month MachineEpure Cost April 54,000 $196,000 May 44,000 $167,000 June 64,000 $304,000 July 76,000 $213,000 Assume that the overhead cost above consists of utilities. supervisory salaries. and maintenance. The breakdown of these costs at the 44.000-machine-h our level of activity in May is as iollows: Utilities (variable) 5 37,000 Supervisory salaries (fixed) 16,000 Maintenance (mixed) 114,000 Total overhead cost $167,000 The company wants to break down the maintenance cost into its variable and xed cost elements. Esquired: 1. Estimate how much of the $213,000 of overhead cost in July was maintenance cost. [Hint To do this, first determine how much of the $213,000 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 places.) 9 Answer Is complete and correct. 2. Using the highlow method, estimate a cost formula for maintenance. {Round the \"Variable cost per unit\" to 2 decimal places] 9 Answer I! complete Ilut not entirely correct. $ 133,150 0 114mm 9 $ 19450 Variable cum element 0.60 a per MH Fixed omit element 87555 a High acvily level Law acvily level
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