Question: Please answer these questions and explain wherever possible. I will thumbs up asap. Thank you. Crosshill Company's total overhead costs at various levels of activity


Please answer these questions and explain wherever possible. I will thumbs up asap. Thank you.
Crosshill Company's total overhead costs at various levels of activity are presented below: Month April May June July Machine-Hours 73,000 63,000 83,000 93,000 Total Overhead Cost $115,000 $151,000 $379,000 $201,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 63,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 38,000 28,000 85,000 $151,000 The company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $201,000 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how much of the $201,000 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.) Maintenance cost in July $ 116,905 2. Using the high-low method, estimate a cost formula for maintenance. (Round the "Variable cost per unit" to 2 decimal places.) Machine- Hours Maintenance Cost High activity level Low activity level Change 93,000 $ 63.000 30,000 $ 116,905 85,000 31,905 $ 1.06 per MH Variable cost element Fixed cost element Y = 3. Express the company's total overhead cost in the form Y = a + bx. (Round the "Variable cost per unit" to 2 decimal places.) Variable Cost per Machine-Hour Fixed Cost Utilities cost Supervisory salaries cost Maintenance cost Total overhead cost $ 0.00 $ 0 Y = 4. What total overhead cost would you expect to be incurred at an activity level of 78,000 machine-hours? (Round the "Variable cost per unit" to 2 decimal places.) Total overhead cost
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