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 s 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 Fixed cost element 1.00 per MH 21,111 YE $ 44.111 $ 1.79 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 Total overhead cost 2 decimal places required. 78,000.00 $ 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