Crosshill Company's total overhead costs at various levels of activity are presented below: Month April May June July Machine-Hours 70,000 60,000 80,000 90,000 Total Overhead Cost $201,000 $178,500 $223,500 $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 21,000 106,500 $178,500 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)

Crosshill Company's total overhead costs at various levels of activity are presented below: Month April May June July Machine-Hours 70,000 60,000 80,000 90,000 Total Overhead Cost $201,000 $178,500 $223,500 $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 21,000 106,500 $178,500 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)

Name: Crosshill Company's total overhead costs at various levels of activit
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Description: Crosshill Company's total overhead costs at various levels of activity are presented below:Total Overhead.Cost$201,000$178,500$223,500$246,000MonthAprilMayJuneJulyMachine-Hours70,00060,00080,00090,000Assume that the overhead cost above consists of u

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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