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Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according to the number of machine-hours worked
Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according to the number of machine-hours worked in its production facility. These costs (in Argentinian pesos) at high and low levels of activity over recent years are given below: The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 69,000 machine-hours level of activity as follows: For planning purposes, the company wants to break down the maintenance cost into its variable and fixed cost elements. Required: Estimate how much of the factory overhead cost of 331, 300 pesos at the high level of activity consists of maintenance cost. (Do not round intermediate calculations. Omit the "peso's" sign in your response.) Using the high-low method, estimate a cost formula for maintenance. (X represent per machine-hour.) (Round the "Variable cost per machine-hour" to 2 decimal places and "Fixed cost" to the nearest whole number. Omit the "peso's" sign in your response.) What total overhead costs would you expect the company to incur at an operating level of 75, 900 machine-hours? (Do not round Intermediate calculations. Omit the "peso's" sign in your response.)
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