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2-Golden Company's total overhead cost at various levels of activity are presented below: Total Overhead Cost $194,000 $170,200 $217,800 $241,600 Month Machine Hours March 50,000
2-Golden Company's total overhead cost at various levels of activity are presented below: Total Overhead Cost $194,000 $170,200 $217,800 $241,600 Month Machine Hours March 50,000 40,000 60,000 70,000 April May June 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: $52,000 Utilities (variable) Supervisory Salaries (fixed) $60,000 Maintenance (mixed) $58,200 $170,200 Total Overhead Cost A-Estimate how much of the $241,600 overhead cost for June was Maintenance Cost. B-Using the High-Low method, estimate a cost formula for Maintenance. C-Express the company's total overhead cost formula. D-What total overhead cost would you expect at an activity level of 45,000 machine hours
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