Crosshill Company's total overhead costs at various levels of activity are presented below: Total Overhead Month MachineHou rs Cost April 57, 000 $119,000 May 47, 000 $149, 000 June 67, 000 $339,000 July 78,000 $177,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 47,000machine-hour level of activity in May is as follows: Utilities (variable) $ 22,000 Supervisory salaries (fixed) 24,000 Maintenance (mixed) 103.000 Total overhead cost $149,000 The company wants to break down the maintenance cost into its variable and xed cost elements. Required: 1. Estimate how much of the $177,000 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how much of the $177,000 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.) 35 116,340 2. Using the highlow method, estimate a cost formula for maintenance. (Round the "Variable cost per unit" to 2 decimal places.) __ _-_ __ _ HeztomheducationLom C . r ] Chapter3:Assignmento Saved Help saveuxn Submit 5 2. Using the highlow method, estimate a cost formula for maintenance. (Round the "Variable cost per unit" to 2 decimal places.) High activity level 73,000 $ 116,340 15 Low activity level 103,000 5 i p "ts 13,340 !i Variable 00st element eBook Fixed cost element 3 82,800 $ 0.43 3. Express the company's total overhead cost in the form Y= a + bX. (Round the "Variable cost per unlt\" to 2 decimal places.) Utilities cost Supervisory salaries cost Maintenance cost Total overhead cost Mc Graw 3. Express the company's total overhead cost in the form Y=a + bX. (Round the "Variable cost per unit" to 2 decimal places.) Utilities cost Supervisory salaries cost Maintenance cost 0.90 $ 106,800 Total overhead cost 4. What total overhead cost would you expect to be incurred at an activity level of 62,000 machine-hours? (Round the "Variable cost per unit" to 2 decimal places.) $ 162,600