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Crosshill Company's total overhead costs at various levels of activity are presented below Total Overhead Honth Machine Hours Cost April 59,000 $225,000 May 49,000 $161.000

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Crosshill Company's total overhead costs at various levels of activity are presented below Total Overhead Honth Machine Hours Cost April 59,000 $225,000 May 49,000 $161.000 June 69,000 $266,000 July 77.000 $222,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 49,000-machine-hour level of activity in May is as follows Utffties (variable) Supervisory salaries (fixed) Haintenance (mixed) Total overhead cost $ 14,000 17.000 100,000 $161.000 The company wants to break down the maintenance cose into its variable and fixed cost elements Required: 1. Estimate how much of the $222,000 of overhead cost in July was maintenance cost (Hint To do this first determine how much of the $222,000 consisted of utilities and supervisory salaries Think about the behaviour of variable and feed costs within the relevant tange) (Round the "Variable cost per unit" to 2 decimal places.) 5 Required: 1. Eximate how much of the 5222,000 of overhead cost in July was maintenance cost. (Hint To do this for determine how much of the $222000 conused of utilities and supervisory salaries Think about the behaviour of variable and fed code within the relevant range) (Round the "Variable cost per unit to 2 decimal places.) Moscou 15 pants Bol 2. Using the high-low method, estimate a cost formula for maintenance (Round the "Variable com per unit" to 2 decimal places Machine Hours Maintenance Cost High activity level Low activity level Change OS pur Variable custement Fred cost element 5 15 3. Express the company's total overhead cost in the form Y-3 + bx (Round the "Variable cost per unit" to 2 decimal places.) B. Variable Cost per Machine Hour Fixed Cost Utilities cost Supervisory salaries Cost Maintenance cost Total overhead cost 0 0.005 5 4. What total overhead cost would you expect to be incurred at an activity level of 64.000 machine-hours Round the "Variable cost per unit" to 2 decimal places.) Total othand cost

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