Month March April May June Machine-Hours 50,000 40,000 60,000 70,000 Total Overhead Cost $198,600 $174,400 $222,800 $247,000 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) $ 48,000 Supervisory salaries (fixed) 65,000 Maintenance (mixed) 61,400 Total overhead cost $ 174,400 The company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $247,000 of overhead cost in June was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $247,000 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs within the relevant range.) (Do not round intermediate calculations.) 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.) Y = $ + $ X 3. Express the company's total overhead cost in the form Y = a + bX. (Round the Variable cost per unit to 2 decimal places.) Y = $ + $ X What total overhead cost would you expect to be incurred at an activity level of 45,000 machine-hours? (Do not round intermediate calculations.) Total overhead cost $ Month March April May June Machine-Hours 50,000 40,000 60,000 70,000 Total Overhead Cost $198,600 $174,400 $222,800 $247,000 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) $ 48,000 Supervisory salaries (fixed) 65,000 Maintenance (mixed) 61,400 Total overhead cost $ 174,400 The company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $247,000 of overhead cost in June was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $247,000 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs within the relevant range.) (Do not round intermediate calculations.) 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.) Y = $ + $ X 3. Express the company's total overhead cost in the form Y = a + bX. (Round the Variable cost per unit to 2 decimal places.) Y = $ + $ X What total overhead cost would you expect to be incurred at an activity level of 45,000 machine-hours? (Do not round intermediate calculations.) Total overhead cost $