Crosshill Companys total overhead costs at various levels of activity are presented below:

Month	Machine-Hours	Total Overhead Cost
April	65,000	$	141,000
May	55,000	$	158,000
June	75,000	$	320,000
July	81,000	$	192,000

Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 55,000-machine-hour level of activity in May is as follows:

Utilities (variable)	$	38,000
Supervisory salaries (fixed)		22,000
Maintenance (mixed)		98,000
Total overhead cost	$	158,000

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

Required:

1. Estimate how much of the $192,000 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how much of the $192,000 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs within the relevant range.) (Round the "Variable cost per unit" to 2 decimal places.)

Maintenance cost in july _______

2. Using the highlow method, estimate a cost formula for maintenance. (Round the "Variable cost per unit" to 2 decimal places.)

Machine-hours maintenance cost

High activity level _____. _____

Low activity level ______. ______

Change ______. ______

Variable cost element ______. per MH

Fixed cost element _______. ______

Y = _____ + ______X

3. Express the companys total overhead cost in the form Y = a + bX. (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 70,000 machine hours? (Round the "Variable cost per unit" to 2 decimal places.)

Total Overhead Cost _______