Crosshill Company's total overhead costs at various levels of activity are presented below:

MonthMachine-HoursTotal Overhead CostApril49,000$202,290May39,000$178,190June59,000$226,390July69,000$250,490

Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 39,000-machine-hour levelof activity in May is as follows:

Utilities (variable)$46,800Supervisory salaries (fixed)69,000Maintenance (mixed)62,390Total overhead cost$178,190

The company wants to break down the maintenance cost into its variable and fixed cost elements.

Required:

1. Estimate how much of the $250,490 of overhead cost in July was maintenance cost. (Hint: first determine how much of the $250,490 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.)(Do not round intermediate calculations.)

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.)

machine hours machine cost

high activity level ............... .............

low activity level ................. ..............

change ............... ........................

variable cost element .................. .............

fixed cost element .................. ...............

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 ............ ..............

y=....+....x

4. What total overhead cost would you expect to be incurred at an activity level of 44,000 machine-hours?

(Do not round intermediate calculations.)

total overhead cost...........................