Question: can you please help me with part 4 Return to question Crosshill Company's total overhead costs at various levels of activity are presented below: Machine-Hours

can you please help me with part 4
can you please help me with part 4 Return to question Crosshill
Company's total overhead costs at various levels of activity are presented below:
Machine-Hours Total Overhead Cost Month April $200,400 70,000 60,000 May $177,600 June
80,000 July 90,000 $223,200 $246,000 Assume that the overhead cost above consists
of utilities, supervisory salaries, and maintenance. The breakdown of these costs at

Return to question Crosshill Company's total overhead costs at various levels of activity are presented below: Machine-Hours Total Overhead Cost Month April $200,400 70,000 60,000 May $177,600 June 80,000 July 90,000 $223,200 $246,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 60,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) $50,400 21,000 106,200 Maintenance (mixed) Total overhead cost $177,600 The company wants to break down the maintenance cost into its variable and fixed cost elements. Required: Required: 1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how much of the $246,000 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.) Answer is complete and correct. Maintenance cost in July 149,400 2. Using the high-low method, estimate a cost formula for maintenance. (Round the "Variable cost per unit" to 2 decimal places.) Answer is complete and correct. Machine- Maintenance Cost Hours High activity level 90,000 149,400 Low activity level 60,000 106,200 Change 30,000 43,200 Variable cost element Fixed cost element $ 1.44 per MH 19,800 Return to questions Answer is complete and correct. 19,800 $ 1.44 3. Express the company's total overhead cost in the form Ya+bX. (Round the "Variable cost per unit" to 2 decimal places.) Answer is complete and correct. Variable Cost per Machine- Fixed Cost Hour Utilities cost Supervisory salaries cost Maintenance cost Total overhead cost 0.84 1.44 2.28 $ $ 21,000 19,800 40,800 Answer is complete and correct. $ 40,800 $ 2.28 X 4. What total overhead cost would you expect to be incurred at an activity level of 75,000 machine-hours? (Round the "Variable cost per unit" to 2 decimal places.) Answer is complete but not entirely correct. Total overhead cost S 201,750

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!