Golden Companys total overhead cost at various levels of activity are presented below:

Month	Machine-Hours	Total Overhead Cost
March	50,000	$209,100
April	40,000	$181,700
May	60,000	$236,500
June	70,000	$263,900

Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 40,000 machine-hour level of activity is as follows:

Utilities (variable)	$	60,000
Supervisory salaries (fixed)		55,000
Maintenance (mixed)		66,700
Total overhead cost	$	181,700

The company wants to break down the maintenance cost into its variable and fixed cost elements.

Required:

1.

Estimate how much of the $263,900 of overhead cost in June was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $263,900 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs within the relevant range.) (Do not round intermediate calculations. Omit the "$" sign in your response.)

Maintenance cost in June

$

2.	Using the high-low method, estimate a cost formula for maintenance. (Round the "Variable cost per unit" to 2 decimal places and "Fixed cost" to the nearest dollar amount. Omit the "$" sign in your response.)

Y

=

$

+

$

X

3.	Express the companys total overhead cost in the form Y = a + bX. (Round the "Variable cost per unit" to 2 decimal places and "Fixed cost" to the nearest dollar amount. Omit the "$" sign in your response.)

Y

=

$

+

$

X

4.	What total overhead cost would you expect to be incurred at an activity level of 45,000 machine-hours?(Do not round intermediate calculations. Omit the "$" sign in your response.)

Total overhead cost

$