Question: Please, only answer if you have the CORRECT ANSWER to the question. if your answer is wrong or irrelevant, I will REPORT it to Chegg

Please, only answer if you have the CORRECT ANSWER to the question. if your answer is wrong or irrelevant, I will REPORT it to Chegg and leave a thumb down. So please, check your answer before posting it!
Crosshill Company's total overhead costs at various levels of activity are presented
below. Month April Machine-Hours 70,000 Total Overhead Cost May June July 60,000
80,000 90,000 $203,200 $181,800 $224,600 $246,000 Assume that the overhead cost above
Will leave a thumb up if you have the correct answer!

Crosshill Company's total overhead costs at various levels of activity are presented below. Month April Machine-Hours 70,000 Total Overhead Cost May June July 60,000 80,000 90,000 $203,200 $181,800 $224,600 $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) Maintenance (mixed) Total overhead cost $51,000 21,000 109,800 $181,800 The company wants to break down the maintenance cost into its variable and fixed cost elements. 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.) Maintenance cost in July

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!