Crosshill Company's total overhead costs at various levels of activity are presented below: Total Overhead Cost $202,000 $180,000 $224,000 $246,000 Month April May June July Machine-Hours 70,000 60,000 80,000 90,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these c 60,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost Maintenance cost in July $ 49,800 21,000 109, 200 $180,000 The company wants to break down the maintenance cost into its variable and fixed co 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 the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the 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: Total Overhead Cost $202,000 $180,000 $224,000 $246,000 Month April May June July Machine-Hours 70,000 60,000 80,000 90,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these c 60,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost Maintenance cost in July $ 49,800 21,000 109, 200 $180,000 The company wants to break down the maintenance cost into its variable and fixed co 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 the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the range.) (Round the "Variable cost per unit" to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Problem 3-15 High-Low Method; Predicting Cost [LO1, LO2]
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
Utilities (variable)
Supervisory salaries (fixed)
Maintenance (mixed)
Total overhead cost
Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs
60,000-machine-hour level of activity in May is as follows:
Total Overhead
Cost
$202,000
$180,000
$224,000
$246,000
Maintenance cost in July
The company wants to break down the maintenance cost into its variable and fixed cost elements.
h
$ 49,800
21,000
109, 200
$180,000
Required:
1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how mu
the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the rel
range.) (Round the "Variable cost per unit" to 2 decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F236c5b4a-2fbe-417f-ba57-a9dd3242089a%2Fe341df51-cbe4-4206-81bf-9b5120d8450e%2Fe1dwzjj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 3-15 High-Low Method; Predicting Cost [LO1, LO2]
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
Utilities (variable)
Supervisory salaries (fixed)
Maintenance (mixed)
Total overhead cost
Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs
60,000-machine-hour level of activity in May is as follows:
Total Overhead
Cost
$202,000
$180,000
$224,000
$246,000
Maintenance cost in July
The company wants to break down the maintenance cost into its variable and fixed cost elements.
h
$ 49,800
21,000
109, 200
$180,000
Required:
1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first determine how mu
the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the rel
range.) (Round the "Variable cost per unit" to 2 decimal places.)
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