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Crosshill Company's total overhead costs at various levels of activity are presented below. Month pril May Machine Hours 19,000 39,000 59,000 69.000 Total Overhead Cost

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Crosshill Company's total overhead costs at various levels of activity are presented below. Month pril May Machine Hours 19,000 39,000 59,000 69.000 Total Overhead Cost $191,860 $164,460 $219, 260 $246,660 July Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 39,000 machine-hour level of activity in May is as follows: Utilities variable) Supervisory salaries (fixed) Maintenance mixed) 62.400 43.000 59,060 nces Total overhead coat $164.960 The company wants to break down the maintenance cost into its variable and fixed cost elements Required: 1. Estimate how much of the 5246,660 of overhead cost in July was maintenance cost. (Hint To do this, first determine how much of the $246 660 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range) (Do not round Intermediate calculations.) 2. Using the high-low mlshod, estimate a cost formula for maintenance (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.) Cost High activity level Low activity level Change OS 0 Vantecost cement Fixed cost dement

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