Crosshill Company's total overhead costs at various levels of activity are presented below: Total Overhead month Machine-Hours Cost April 70,000 $201,000 May 50,000 $170,500 June 30,000 $223,500 July 90,000 $245,000 Assume that the overhead cost above consists of utilities. supervisory salaries. and maintenance. The breakdown of these costs at the 50,000-machine-hour level of activity in May is as follows: Utilities {variable} S 51,000 Supervisory salaries (fixed) 21 , 000 Maintenance (mixed) 106 , 500 Total overhead cost. 5 178 , 500 The company wants to break down the maintenance cost into its variable and xed cost elements. gufred: 1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint To do this, rst determine how much of the $246,000 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.) 2. Using the high-low method, estimate a cost formula for maintenance. (Round the "Variable cost per unit" to 2 decimal places.) High activity level Low activity level Change Variable cost element per MH Fixed Dost element 3. Express the company's total overhead cost in the form Y= a + bX. [Round the "Variable cost per |.Init'I to 2 decimal places.) Utilies 0051 Supervisory salaries cost Maintenance cost Total overhead cost 4. What total overhead cost would you expect to be incurred at an activity level of 75,000 machine-hours? (Round the "Variable cost per unit" to 2 decimal places.) _:|