Plubien 3 HigH-LOW Method; Predicting Cost [LO1, LO2] Crosshill Company's total overhead costs at various levels of activity are presented below: Total Machine-Hours Overhead Cost Month April May 48,e00 38,e00 $204,660 $178,960 $230,360 $256,060 June 58,000 July 68,e00 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of the 38,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) 53,200 67,e00 58,760 $ 178,960 Total overhead cost The company wants to break down the maintenance cost into its variable and fixed cost elements 1. Estimate how much of the $256,060 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how much of the $256,060 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.)(Do not round intermediate calculations.) Maintenance cost in July 2. Using the high-low method, estimate a cost formula for maintenance. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.) Maintenance Machine- Hours Cost High activity level Low activity level Change per MH Variable cost element Fixed cost element Next CNG Y = X 3. Express the company's total overhead cost in the form Y = a + bX. (Do not round your intermediate calculations. 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