Crosshill Company's total overhead costs at various levels of activity are presented below: Month April May June July Machine-Hours 73,000 63,000 83,000 91,000 Total Overhead Cost $ 122,000 $136,000 $379,000 $177,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 63,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 29,000 23,000 84,000 $ 136,000 The company wants to break down the maintenance cost into its variable and fixed 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.) Maintenance cost in July $ 112, 111 2. Using the high-low 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 91,000 63,000 28,000 112,111 84,000 28,111 $ Variable cost element $ 1.00 per MH 21,111 Fixed cost element Y = $ 44,111 + $ 1.79 X 3. Express the company's total overhead cost in the form Y = a +bX. (Round the "Variable cost per unit" to 2 decimal places.) Fixed Cost Variable Cost per Machine-Hour $ 78,000.00 Utilities cost Supervisory salaries cost Maintenance cost 2 decimal places required. $ 78,000.00 $ Total overhead cost 0 Y= X 4. What total overhead cost would you expect to be incurred at an activity level of 78,000 machine-hours? (Round the "Variable cost per unit" to 2 decimal places.) Total overhead cost