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




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
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