Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Since i have this course online i am struggling. need help to solve this. it would be helpful. Crosshill Company's total overhead costs at various

image text in transcribedimage text in transcribed

Since i have this course online i am struggling. need help to solve this. it would be helpful.

image text in transcribedimage text in transcribedimage text in transcribed
Crosshill Company's total overhead costs at various levels of activity are presented below: Total Overhead Month Hackingmute Cost April 54,000 $196,000 May 441,000 $167,000 June 641,000 $304,000 JulyY 76,000 $213,000 Assume that the overhead cost above consists of utilities. supervisory salaries, and maintenance. The breakdown of these costs at the 44.000-machine-hour level of activity in May is as follows: Utilities (variable) 5 37,000 Supervisory salaries (fixed) 16,000 Maintenance (mixed) 114, 000 Total overhead cost: $167 , 000 The company wants to break down the maintenance cost into its variable and xed cost elements. Required: 1. Estimate how much of the $213,000 of overhead cost in July was maintenance cost. [Hint To do this, rst determine how much of the $213,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.) {Round the 'Variable cost per unit' to 2 decimal places.) 2. Using the highlow method, estimate a cost formula for maintenance. {Round the \"Variable cost per unit\" to 2 decimal places] High aciivily level Lew eeiivily level Variable east element Fixed oust element 3. Express the company's total overhead cost in the form Y= a + bX. {Round the \"Variable cost per unit\" to 2 decimal places.) Utilities oust Supervisory salaries cast Maintenance cost Total overhead cost 4. What total overhead cost would you expect to be incurred at an activity level of 59,000 machine-hours? [Round the \"Variable cost per unit" to 2 decimal places.) _:|

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

8th Canadian Edition

111950242X, 1-119-50242-5, 978-1119502425

More Books

Students also viewed these Accounting questions

Question

describe the key elements of work;

Answered: 1 week ago

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago

Question

Go, do not wait until I come

Answered: 1 week ago

Question

Make eye contact when talking and listening

Answered: 1 week ago

Question

Do not go, wait until I come

Answered: 1 week ago