MANAGERIAL ACCOUNTING

5-17

prospero corporations total overhead costs at various levels of activity are presented below:

I need help with 1-4 , with explanation

thanks!

total actory overhead costs would you expect the company to incur at an operating level of L, estimate a cost formula for maintenance lHable and fixed costs!) 3. What 4.800 directlabor-hours? 7 High-Low Analysis and Predicting Cost (LOI, LO3) PROBLEM 5-17 Prospero Corporation's ion's total overhead costs at various levels of activity are presented below: CHECK FIGURE (2) $47,500 per month plus $1.50 per machine-hour Machine. Hours Total Overhead Costs Month September.?.. October 20,000 November $99,500 $119.000 $138,500 15,000 5.00 $80.000 Assume that the total overhead costs above consist of utilities, supervisory saleries, and msinienauce. The breakdown of these costs at the 5,000 machine-hour level of activity is $12,000 Supervisory salaries (F)...13,000 Maintenance (M).. . 55,000 v variable: F fixed: M mixed. Prospero Corporation's management wants to break down the maintenance cost into its basic variable and fixed cost elements. Required I. As shown above, overhead costs in October amounted to S138,500. Determine how much of thi consisted of maintenance cost. (Hint: To do this, it may be helpful to first determine how much of